Competitive information disclosure in random search markets

Abstract

We analyze the role of competition in information provision in random search markets. Multiple symmetric senders compete for the receiver's investment by disclosing information about their respective project qualities, and the receiver conducts random search to learn about the qualities of the projects. We show that in any symmetric pure strategy Nash equilibrium, each sender chooses a strategy with the lowest possible reservation value. There is no active search, and the receiver does not benefit from the competition of the senders.