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An entrepreneur contracts with a consultant, who is protected by limited liability, to supply information about the state of a project prior to investing in it. For a given level of investment, a good project succeeds with higher probability than a bad one. The entrepreneur makes an upfront...
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We investigate strategic information transmission with communication error, or noise. Our main finding is that adding … it possible to achieve the best payoff that can be obtained by means of any communication device. As in the model without …
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) equilibrium. Fully informative myopic and farsighted equilibria essentially take a particular simple form: all communication is … and analyze equilibrium welfare. Furthermore, we extend our model to public communication and investigate the implications …
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I study a persuasion game between a privately informed agent and a decision maker (DM) who can imperfectly verify the statements made by the agent by observing a signal that is correlated with the agent's information. I find that whether or not the DM benefits from communicating with the agent...
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