It is often touted that decisiveness is one of the most important qualities to be possessed by leaders, broadly defined. To see how and why decisiveness can be a valuable asset in organizations, we construct a model of strategic information transmission where: (i) a decision maker solicits...

This paper examines the effectiveness of cheap talk when the receiver is imperfectly informed. We show that the receiver's prior knowledge becomes an impediment to efficient communication in a model with the discrete state space: in general, the more the receiver is informed, the less...

In this paper we analyze a cheap talk model with a partially informed receiver. In clear contrast to the previous literature, we find that there is a case where the receiver's prior knowledge enhances the amount of information conveyed via cheap talk. The point of departure is our explicit focus...

In this paper we analyze a cheap talk model with a partially informed receiver. In clear contrast to the previous literature, we find that there is a case where the receiver's prior knowledge enhances the amount of information conveyed via cheap talk. The point of departure is our explicit focus...

It is often touted that decisiveness is one of the most important qualities to be possessed by leaders, broadly defined. To see how and why decisiveness can be a valuable asset in organizations, we construct a model of strategic information transmission where: a decision maker solicits opinions...

This paper considers a model of strategic information transmission with an imperfectly informed receiver and provides a simple logic by which the receiver's prior knowledge becomes an impediment to efficient communication. We show that the extent of communication is severely limited as the...

The purpose of this paper is to examine how tasks should be allocated in a simple hierarchy consisting of an organizational designer and subordinates, in the framework of a principal-agent relationship with moral hazard.

The new welfare economics, both of the Kaldor-Hicks-Scitovsky-Samuelson school built on the compensation principles and the Bergson-Samuelson school built on the social welfare function, tried to expand the domain of applicability of the Pareto unanimity principle. The purpose of this paper is...

Demsetz and Lehn (1985), Morck, Shleifer, and Vishny (1988), and McConnell and Servaes (1990) report different empirical findings regarding ownership structure and corporate profitability. In this paper, we re-estimate the relation between management ownership and firm's value after controlling...

This paper studies how media and democracy influence government action taken before and after a natural disaster. The key elements in this relationship are the media's role as the provider of information to voters about government action and the quality of democracy that pertains to how relevant...