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Competition in Signaling

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  • Vaccari, Federico

Abstract

I study a multi-sender signaling game between an uninformed decision maker and two senders with common private information and conflicting interests. Senders can misreport information at a cost that is tied to the size of the misrepresentation. The main results concern the amount of information that is transmitted in equilibrium and the language used by senders to convey such information. Fully revealing and pure-strategy equilibria exist but are not plausible. I first identify sufficient conditions under which equilibria are essentially unique, robust, and always exist, and then deliver a complete characterization of these equilibria. As an application, I study the informative value of different judicial procedures.

Suggested Citation

  • Vaccari, Federico, 2022. "Competition in Signaling," FEEM Working Papers 329582, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemwp:329582
    DOI: 10.22004/ag.econ.329582
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    Cited by:

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    More about this item

    Keywords

    Industrial Organization; Institutional and Behavioral Economics;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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

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