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Public communication with externalities

Author

Listed:
  • Lukyanov, Georgy
  • Shamruk, Konstantin
  • Su, Tong
  • Wakrim, Ahmed

Abstract

This paper develops a model in which a sender strategically communicates with a group of receivers whose payoffs depend on the sender's information. It is shown that aggregate payoff externalities create an endogenous conflict of interests between the sender and the receivers, rendering full information revelation, in general infeasible. We demonstrate that an exogenous bias in the sender's preferences can improve public information provision and raise welfare. Two applications of the setup are discussed.

Suggested Citation

  • Lukyanov, Georgy & Shamruk, Konstantin & Su, Tong & Wakrim, Ahmed, 2022. "Public communication with externalities," Games and Economic Behavior, Elsevier, vol. 136(C), pages 177-196.
    • Handle: RePEc:eee:gamebe:v:136:y:2022:i:c:p:177-196
    DOI: 10.1016/j.geb.2022.09.003
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    More about this item

    Keywords

    Public information; Optimal bias; Externalities; Communication;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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