Presidential Address Costly Communication and Incentives
AbstractThis paper discusses the introduction of incentive considerations in a model of costly communication. It starts from a simplified version of a team-theoretic model due to Dessein and Santos (2003), which relates the design of an organization to its adaptiveness to environmental uncertainty. Incentives are introduced in this setting, following an approach developed by Dewatripont and Tirole (2005). Doing so enriches the analysis by allowing for the coexistence of various forms of communication, in particular cheap talk versus costly communication. (JEL: D8) (c) 2006 by the European Economic Association.
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Bibliographic InfoArticle provided by MIT Press in its journal Journal of the European Economic Association.
Volume (Year): 4 (2006)
Issue (Month): 2-3 (04-05)
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- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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- Ennio Bilancini & Leonardo Boncinelli, 2014.
"Persuasion with Reference Cues and Elaboration Costs,"
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102, University of Modena and Reggio E., Dept. of Economics.
- Ennio Bilancini & Leonardo Boncinelli, 2014. "Persuasion with Reference Cues and Elaboration Costs," Working Papers - Economics wp2014_04.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
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