Advances in Mathematical Economics

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Asymmetric information plays a crucial role in resource allocation, with traditional economic research focusing on principal-agent relationships. Recent studies expand this analysis to situations lacking a hierarchical structure, allowing players to communicate and coordinate their strategies. Key contributions include foundational works on incomplete information, Bayesian incentive compatibility, and the endogenous determination of information structures. These studies emphasize collaborative mechanism design and contract execution among all players involved, moving beyond the conventional optimization frameworks.