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Strategic gradual learning and information transmission

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  • Frug, Alexander

Abstract

Prior to advising a decision maker, the expert needs to gather some relevant information. This often takes time, and therefore, even if the expert's learning process is unobservable, the timing of advice can be informative in itself. If, in addition, the expert can choose which experiments to perform, the timing of her advice may reveal not only the amount but also the type of information at her disposal. This paper studies a dynamic information transmission problem where a biased expert acquires information by performing a sequence of experiments, which cannot be observed by the decision maker. It is shown that, even in the absence of an objective reason to expedite information transmission, artificial time pressure can increase the amount of information transmitted and be beneficial to both players.

Suggested Citation

  • Frug, Alexander, 2018. "Strategic gradual learning and information transmission," Journal of Economic Theory, Elsevier, vol. 177(C), pages 594-615.
    • Handle: RePEc:eee:jetheo:v:177:y:2018:i:c:p:594-615
    DOI: 10.1016/j.jet.2018.07.006
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    Cited by:

    1. Escudé, Matteo & Sinander, Ludvig, 2023. "Slow persuasion," Theoretical Economics, Econometric Society, vol. 18(1), January.
      • Matteo Escud'e & Ludvig Sinander, 2019. "Slow persuasion," Papers 1903.09055, arXiv.org, revised Apr 2022.
    2. Eliaz, Kfir & Frug, Alexander, 2018. "Bilateral trade with strategic gradual learning," Games and Economic Behavior, Elsevier, vol. 107(C), pages 380-395.
    3. Kfir Eliaz & Alexander Frug, 2016. "When to Learn what in Bilateral Trade," Working Papers 936, Barcelona School of Economics.
    4. Hidir, Sinem, 2017. "Information Acquisition and Credibility in Cheap Talk," CRETA Online Discussion Paper Series 36, Centre for Research in Economic Theory and its Applications CRETA.

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    More about this item

    Keywords

    Gradual learning; Strategic scheduling of experiments; Dynamic information transmission; Cheap talk;
    All these keywords.

    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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