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Vagueness in multidimensional proposals

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  • Zhang, Qiaoxi

Abstract

This paper studies how agents choose to be vague in their proposals in a delegation environment. Two agents compete for the approval of a decision maker to implement a multidimensional action. Based on their knowledge of the consequences of actions, agents propose future actions but can be vague about any dimension. The decision maker, uncertain about the consequences of actions, chooses one agent to act. I show that vagueness on the dimension where one stands closer to the decision maker than his opponent preserves such an advantage, while preciseness undermines it. Vagueness therefore tends to occur on agents' advantageous dimensions.

Suggested Citation

  • Zhang, Qiaoxi, 2020. "Vagueness in multidimensional proposals," Games and Economic Behavior, Elsevier, vol. 121(C), pages 307-328.
    • Handle: RePEc:eee:gamebe:v:121:y:2020:i:c:p:307-328
    DOI: 10.1016/j.geb.2020.03.003
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    Cited by:

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    2. Peter Vida & Takakazu Honryo & Helmuts Azacis, 2022. "Strong Forward Induction in Monotonic Multi-Sender Signaling Games," THEMA Working Papers 2022-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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    More about this item

    Keywords

    Delegation; Vagueness; Signaling; Intuitive criterion;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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