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Cheap talk with two senders and complementary information

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  • McGee, Andrew
  • Yang, Huanxing

Abstract

This paper studies a cheap talk model in which two senders having partial and non-overlapping private information simultaneously communicate with an uninformed receiver. The sensitivity of the receiverʼs ideal action to one senderʼs private information depends on the other senderʼs private information. We show that the sendersʼ information transmissions exhibit strategic complementarity: more information transmitted by one sender leads to more information being transmitted by the other sender.

Suggested Citation

  • McGee, Andrew & Yang, Huanxing, 2013. "Cheap talk with two senders and complementary information," Games and Economic Behavior, Elsevier, vol. 79(C), pages 181-191.
    • Handle: RePEc:eee:gamebe:v:79:y:2013:i:c:p:181-191
    DOI: 10.1016/j.geb.2013.02.001
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    Citations

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    Cited by:

    1. Schopohl, Simon, 2016. "Communication games with optional verification," Center for Mathematical Economics Working Papers 569, Center for Mathematical Economics, Bielefeld University.
    2. Saak, Alexander E., 2012. "Infectious disease detection with private information:," IFPRI discussion papers 1162, International Food Policy Research Institute (IFPRI).
    3. Simon Schopohl, 2017. "Communication Games with Optional Verification," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01490688, HAL.
    4. Arnold Polanski & Mark Quement, 2023. "The battle of opinion: dynamic information revelation by ideological senders," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(2), pages 463-483, June.
    5. Chloe Tergiman & Marie Claire Villeval, 2023. "The Way People Lie in Markets: Detectable vs. Deniable Lies," Management Science, INFORMS, vol. 69(6), pages 3340-3357, June.
    6. Jeahan Jung & Jeong-Yoo Kim, 2019. "Cheap Talk by Two Senders in the Presence of Network Externalities," Korean Economic Review, Korean Economic Association, vol. 35, pages 249-274.
    7. Chloe Tergiman & Marie Claire Villeval, 2019. "The Way People Lie in Markets," Working Papers 1927, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    8. Zhuozheng Li & Huanxing Yang & Lan Zhang, 2019. "Pre-communication in a coordination game with incomplete information," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(1), pages 109-141, March.
    9. Travis Dyer & Eunjee Kim, 2021. "Anonymous Equity Research," Journal of Accounting Research, Wiley Blackwell, vol. 59(2), pages 575-611, May.
    10. Ayça Özdoðan, 2016. "A Survey of Strategic Communication and Persuasion," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(1), pages 1-21.
    11. A.K.S. Chand, 2012. "Strategic Information Transmission with Budget Constraint," Working Papers 2012_19, Department of Economics, University of Venice "Ca' Foscari".
    12. Saori Chiba & Kazumi Hori, 2020. "Two-sided Strategic Information Transmission," KIER Working Papers 1029, Kyoto University, Institute of Economic Research.
    13. Alexander E. Saak & David A. Hennessy, 2018. "A model of reporting and controlling outbreaks by public health agencies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(1), pages 21-64, July.
    14. Ambrus, Attila & Lu, Shih En, 2014. "Almost fully revealing cheap talk with imperfectly informed senders," Games and Economic Behavior, Elsevier, vol. 88(C), pages 174-189.
    15. Hiromasa Ogawa, 2021. "Receiver’s sensitivity and strategic information transmission in multi-sender cheap talk," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(1), pages 215-239, March.
    16. Minozzi, William & Woon, Jonathan, 2019. "The limited value of a second opinion: Competition and exaggeration in experimental cheap talk games," Games and Economic Behavior, Elsevier, vol. 117(C), pages 144-162.
    17. Li, Zhuozheng & Rantakari, Heikki & Yang, Huanxing, 2016. "Competitive cheap talk," Games and Economic Behavior, Elsevier, vol. 96(C), pages 65-89.
    18. Chiba, Saori & Hori, Kazumi, 2022. "Two-sided strategic information transmission," Games and Economic Behavior, Elsevier, vol. 134(C), pages 229-241.
    19. Szalay, Dezső & Deimen, Inga, 2020. "Authority in a theory of the firm," CEPR Discussion Papers 15026, C.E.P.R. Discussion Papers.
    20. Simon Schopohl, 2017. "Communication Games with Optional Verification," Post-Print halshs-01490688, HAL.

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    More about this item

    Keywords

    Cheap talk; Multiple senders;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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