IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2207.04929.html
   My bibliography  Save this paper

Information Design in Cheap Talk

Author

Listed:
  • Qianjun Lyu
  • Wing Suen

Abstract

An uninformed sender publicly commits to an informative experiment about an uncertain state, privately observes its outcome, and sends a cheap-talk message to a receiver. We provide an algorithm valid for arbitrary state-dependent preferences that will determine the sender's optimal experiment, and give sufficient conditions for information design to be valuable or not under different payoff structures. These conditions depend more on marginal incentives -- how payoffs vary with the state -- than on the alignment of sender's and receiver's rankings over actions within a state.

Suggested Citation

  • Qianjun Lyu & Wing Suen, 2022. "Information Design in Cheap Talk," Papers 2207.04929, arXiv.org.
    • Handle: RePEc:arx:papers:2207.04929
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2207.04929
    File Function: Latest version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Inga Deimen & Dezső Szalay, 2019. "Delegated Expertise, Authority, and Communication," American Economic Review, American Economic Association, vol. 109(4), pages 1349-1374, April.
    2. Pei, Harry Di, 2015. "Communication with endogenous information acquisition," Journal of Economic Theory, Elsevier, vol. 160(C), pages 132-149.
    3. Nguyen, Anh & Tan, Teck Yong, 2021. "Bayesian persuasion with costly messages," Journal of Economic Theory, Elsevier, vol. 193(C).
    4. Ivanov, Maxim, 2010. "Informational control and organizational design," Journal of Economic Theory, Elsevier, vol. 145(2), pages 721-751, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark Whitmeyer & Kun Zhang, 2022. "Costly Evidence and Discretionary Disclosure," Papers 2208.04922, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ivanov, Maxim & Sam, Alex, 2022. "Cheap talk with private signal structures," Games and Economic Behavior, Elsevier, vol. 132(C), pages 288-304.
    2. Manuel Foerster & Daniel Habermacher, 2023. "Policy-advising Competition and Endogenous Lobbies," Working Papers 229, Red Nacional de Investigadores en Economía (RedNIE).
    3. Daniel Habermacher, 2022. "Authority and Specialization under Informational Interdependence," Working Papers 142, Red Nacional de Investigadores en Economía (RedNIE).
    4. Qianjun Lyu & Wing Suen, 2023. "Information Design in Cheap Talk," CRC TR 224 Discussion Paper Series crctr224_2023_470, University of Bonn and University of Mannheim, Germany.
    5. Daniel Habermacher, 2022. "Information Aggregation in Multidimensional Cheap Talk," Working Papers 169, Red Nacional de Investigadores en Economía (RedNIE).
    6. Letina, Igor & Liu, Shuo & Netzer, Nick, 2020. "Delegating performance evaluation," Theoretical Economics, Econometric Society, vol. 15(2), May.
    7. Frug, Alexander, 2018. "Strategic gradual learning and information transmission," Journal of Economic Theory, Elsevier, vol. 177(C), pages 594-615.
    8. Rossella Argenziano & Sergei Severinov & Francesco Squintani, 2016. "Strategic Information Acquisition and Transmission," American Economic Journal: Microeconomics, American Economic Association, vol. 8(3), pages 119-155, August.
    9. Nguyen, Anh & Tan, Teck Yong, 2021. "Bayesian persuasion with costly messages," Journal of Economic Theory, Elsevier, vol. 193(C).
    10. Mats Köster & Paul Voss, 2023. "Conversations," CESifo Working Paper Series 10275, CESifo.
    11. Shuo Liu & Dimitri Migrow, 2019. "Designing organizations in volatile markets," ECON - Working Papers 319, Department of Economics - University of Zurich.
    12. , & , M. & ,, 2013. "Hierarchical cheap talk," Theoretical Economics, Econometric Society, vol. 8(1), January.
    13. Asseyer, Andreas, 2020. "Collusion and delegation under information control," Discussion Papers 2020/3, Free University Berlin, School of Business & Economics.
    14. Prato, Carlo & Turner, Ian R, 2022. "Institutional Foundations of the Power to Persuade," SocArXiv 4w9af, Center for Open Science.
    15. Dino Gerardi & Lucas Maestri & Ignacio Monzon, 2023. "Delegation with Endogenous States," Carlo Alberto Notebooks 711 JEL Classification: C, Collegio Carlo Alberto.
    16. Szalay, Dezső & Deimen, Inga, 2015. "Information, authority, and smooth communication in organizations," CEPR Discussion Papers 10969, C.E.P.R. Discussion Papers.
    17. Kovác, Eugen & Mylovanov, Tymofiy, 2009. "Stochastic mechanisms in settings without monetary transfers: The regular case," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1373-1395, July.
    18. Vincent Anesi & Daniel J. Seidmann, 2009. "Optimal Delegation with a Finite Number of States," Discussion Papers 2009-20, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    19. Emir Kamenica & Matthew Gentzkow, 2011. "Bayesian Persuasion," American Economic Review, American Economic Association, vol. 101(6), pages 2590-2615, October.
    20. Foerster, Manuel & Voss, Achim, 2022. "Believe me, I am ignorant, but not biased," European Economic Review, Elsevier, vol. 149(C).

    More about this item

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2207.04929. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.