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Pandering to Persuade

Author

Listed:
  • Yeon-Koo Che
  • Wouter Dessein
  • Navin Kartik

Abstract

A principal chooses one of n>=2 projects or an outside option. An agent is privately informed about the projects' benefits and shares the principal's preferences except for not internalizing her value from the outside option. We show that strategic communication is characterized by pandering: the agent biases his recommendation toward good-looking projects--those with appealing observable attributes--even when both parties would be better off with some other project. Projects become more acceptable when pitched against a stronger slate of alternatives. We study organizational responses to the pandering distortion, such as delegation and choosing to be less informed.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Yeon-Koo Che & Wouter Dessein & Navin Kartik, 2010. "Pandering to Persuade," Levine's Bibliography 661465000000000197, UCLA Department of Economics.
    • Handle: RePEc:cla:levrem:661465000000000197
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    File URL: http://www.columbia.edu/~nk2339/Papers/cdk-pandering.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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