We investigate strategic information transmission with communication error, or noise. Our main finding is that adding noise can improve welfare. With quadratic preferences and a uniform type distribution, welfare can be raised for almost every bias level by introducing a sufficiently small...

A speaker attempts to persuade a listener to accept a request by presenting evidence. A persuasion rule specifies what evidence is persuasive. This paper compares static and dynamic rules. We present a single linear program (i) whose solution corresponds to the listener's optimal dynamic rule...

In this paper, I study the dynamic delegation problem in a principal-agent model wherein an agent privately observes a persistently evolving state, and the principal commits to actions based on the agent's reported state. There are no transfers. While the agent has state-independent preferences,...

This paper analyzes a common-value, first-price auction with state-dependent participation. The number of bidders, which is unobservable to them, depends on the true value. For participation patterns with many bidders in each state, the bidding equilibrium may be of a "pooling" type---with high...

We investigate strategic information transmission with communication error, or noise. Our main finding is that adding noise can improve welfare. With quadratic preferences and a uniform type distribution, welfare can be raised for almost every bias level by introducing a sufficiently small...

A speaker attempts to persuade a listener to accept a request by presenting evidence. A persuasion rule specifies what evidence is persuasive. This paper compares static and dynamic rules. We present a single linear program (i) whose solution corresponds to the listener's optimal dynamic rule...