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This note reconsiders communication between an informed expert and an uninformed decision maker with a strategic mediator in a discrete Crawford and Sobel (1982) setting. We show that a strategic mediator may improve communication even when he is biased into the same direction as the expert. The...
Persistent link: https://www.econbiz.de/10010307664
We study cheap-talk pre-play communication in the static all-pay auctions. For the case of two bidders, all correlated and communication equilibria are payoff equivalent to the Nash equilibrium if there is no reserve price, or if it is commonly known that one bidder has a strictly higher value....
Persistent link: https://www.econbiz.de/10011390055
This article analyzes under which conditions a manager can motivate a junior worker by verbal communication, and explains why communication is often tied up with organizational choices as job enlargement and collaboration. Our model has two important features. First, the manager has more...
Persistent link: https://www.econbiz.de/10010325390
When a decision-maker's attention is limited, her decisions depend on what she focuses on. This gives interested parties an incentive to manipulate not only the substance of communication but also the decision-maker's attention allocation. This paper models such attention manipulation. In its...
Persistent link: https://www.econbiz.de/10010335625
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...
Persistent link: https://www.econbiz.de/10011599393
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...
Persistent link: https://www.econbiz.de/10011599506
A key obstacle to coordination and cooperation in many networked environments is that behavior in each bilateral relationship is not observable to individuals outside that relationship: that is, information is local. This paper investigates when players can use communication to replicate any...
Persistent link: https://www.econbiz.de/10011599535
We analyze a repeated cheap-talk game in which the receiver is privately informed about the conflict of interest between herself and the sender and either the sender or the receiver controls the stakes involved in their relationship. We focus on payoff-dominant equilibria that satisfy a...
Persistent link: https://www.econbiz.de/10012060207
Humans communicate their activities and performance in several ways (word of mouth, signs, written language, webpage, social networks, etc.). Currently, businesses use different mechanisms to communicate their Corporate Social Responsibility (CSR) activities to foster their reputation, consumer...
Persistent link: https://www.econbiz.de/10012115970
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,...
Persistent link: https://www.econbiz.de/10014536863