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Robust Information Transmission

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  • Francesc Dilmé

Abstract

This paper investigates robust information transmission between a sender and a receiver in the Crawford and Sobel (1982) model. We characterize behavior that remains equilibrium behavior independently of the form of a small communication cost. Under standard conditions, we find that an equilibrium outcome is robust if and only if it features a maximal number of on-path actions and each is induced by a single message. The result extends regardless of the direction of the bias, the number of available messages, or whether the objectives of the sender and the receiver are aligned.

Suggested Citation

  • Francesc Dilmé, 2023. "Robust Information Transmission," American Economic Review: Insights, American Economic Association, vol. 5(1), pages 111-124, March.
    • Handle: RePEc:aea:aerins:v:5:y:2023:i:1:p:111-24
    DOI: 10.1257/aeri.20210643
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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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