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Conversations

Author

Listed:
  • Mats Köster
  • Paul Voss

Abstract

We develop a theory of conversations. Two agents with different interests take turns choosing the topic of the conversation. Talking about a single topic allows them to delve deeper, making the conversation more informative (or enjoyable). To capture this dynamic, we assume that the marginal utility from conversing increases when the agents stay on topic. The equilibrium conversation is extreme: it either maximizes or minimizes welfare. Long conversations are deep and thus efficient. Short ones are often superficial. The topic of a deep conversation depends in subtle ways on who speaks when. Applications range from echo chambers to team production.

Suggested Citation

  • Mats Köster & Paul Voss, 2023. "Conversations," CESifo Working Paper Series 10275, CESifo.
    • Handle: RePEc:ces:ceswps:_10275
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10275.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    communication; information acquisition; team production;
    All these keywords.

    JEL classification:

    • 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:

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