A simple model of project selection with strategic communication and uncertain motives
AbstractI analyze a problem of project selection where two agents, privately informed of both the true value and their bias in favor of their alternatives, make non-verifiable proposals to an uninformed decision-maker. The analysis makes two contributions. First, I examine the consequences of preference uncertainty for the information aggregation problem and show that the relative attractiveness of allowing a given agent to cast the decisive vote is increasing in the stability of his preferences. Second, I analyze the costs and benefits of pre-communication disclosure of the realized biases. I find that, conditional on the decision structure, disclosing the bias of the decisive agent is never optimal while disclosing the bias of the other agent is always optimal. This result makes an asymmetric treatment of the agents in terms of disclosure policies often optimal, despite the additional benefit of disclosure, which is the ability to condition the decision-making structure itself on the disclosed biases.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 102 (2014)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/jebo
Information aggregation; Cheap talk; Multiple agents; Delegation;
Find related papers by 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
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hao Li & Sherwin Rosen & Wing Suen, 2000.
"Conflicts and Common Interests in Committees,"
Econometric Society World Congress 2000 Contributed Papers
0341, Econometric Society.
- Jeanne Hagenbach & Frédéric Koessler, 2009.
"Strategic communication networks,"
Documents de travail du Centre d'Economie de la Sorbonne
09005, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Wolinsky, Asher, 2002.
"Eliciting information from multiple experts,"
Games and Economic Behavior,
Elsevier, vol. 41(1), pages 141-160, October.
- Goltsman, Maria & Pavlov, Gregory, 2011.
"How to talk to multiple audiences,"
Games and Economic Behavior,
Elsevier, vol. 72(1), pages 100-122, May.
- Stephen Morris, 2001.
Journal of Political Economy,
University of Chicago Press, vol. 109(2), pages 231-265, April.
- Krishna, V. & Morgan, J., 1999.
"A Model of Expertise,"
206, Princeton, Woodrow Wilson School - Public and International Affairs.
- Ricardo Alonso & Wouter Dessein & Niko Matouschek, 2008. "When Does Coordination Require Centralization? Corrigendum," American Economic Review, American Economic Association, vol. 98(3), pages 1195-96, June.
- Ivanov, Maxim, 2010. "Communication via a strategic mediator," Journal of Economic Theory, Elsevier, vol. 145(2), pages 869-884, March.
- Yeon-Koo Che & Wouter Dessein & Navin Kartik, 2010.
"Pandering to Persuade,"
661465000000000197, UCLA Department of Economics.
- Goltsman, Maria & Hörner, Johannes & Pavlov, Gregory & Squintani, Francesco, 2009. "Mediation, arbitration and negotiation," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1397-1420, July.
- Crawford, Vincent P & Sobel, Joel, 1982.
"Strategic Information Transmission,"
Econometric Society, vol. 50(6), pages 1431-51, November.
- Dziuda, Wioletta, 2011. "Strategic argumentation," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1362-1397, July.
- Paul R. Milgrom & John Roberts, 1985.
"Relying on the Information of Interested Parties,"
Cowles Foundation Discussion Papers
749, Cowles Foundation for Research in Economics, Yale University.
- Wolinsky, Asher, 2003. "Information transmission when the sender's preferences are uncertain," Games and Economic Behavior, Elsevier, vol. 42(2), pages 319-326, February.
- Archishman Chakraborty & Rick Harbaugh, 2006.
"Persuasion by Cheap Talk,"
2006-10, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy, revised Oct 2009.
- Gilligan, Thomas W & Krehbiel, Keith, 1987. "Collective Decisionmaking and Standing Committees: An Informational Rationale for Restrictive Amendment Procedures," Journal of Law, Economics and Organization, Oxford University Press, vol. 3(2), pages 287-335, Fall.
- Milton Harris & Artur Raviv, 2005. "Allocation of Decision-making Authority," Review of Finance, Springer, vol. 9(3), pages 353-383, 09.
- Alonso, Ricardo & Dessein, Wouter & Matouschek, Niko, 2006.
"When Does Coordination Require Centralization?,"
CEPR Discussion Papers
5802, C.E.P.R. Discussion Papers.
- Ambrus, Attila & Azevedo, Eduardo M. & Kamada, Yuichiro & Takagi, Yuki, 2013. "Legislative committees as information intermediaries: A unified theory of committee selection and amendment rules," Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 103-115.
- Li, Ming & Madarász, Kristóf, 2008. "When mandatory disclosure hurts: Expert advice and conflicting interests," Journal of Economic Theory, Elsevier, vol. 139(1), pages 47-74, March.
- Gerardi, Dino & Yariv, Leeat, 2007. "Deliberative voting," Journal of Economic Theory, Elsevier, vol. 134(1), pages 317-338, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.