Communication and Binary Decision : Is it Better to Communicate ?
AbstractWe study information transmission between an informed expert and an uninformed decision-maker when the decision is binary and the expert does not have a systematic bias. Whenever, an equilibrium exists where the decision is delegated to the expert, it is ex-ante Pareto-dominant. Adding a round of multilateral communication does not improve information transmission. The decision-maker can however improve information transmission by communicating sequentially with two experts. However, introduce multiple rounds of communication (i.e., allowing for rebuttal) does not help
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Bibliographic InfoPaper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2013-50.
Date of creation: Sep 2013
Date of revision:
Other versions of this item:
- Frédéric Loss & Estelle Malavolti & Thibaud Vergé, 2013. "Communication and Binary Decisions: Is it Better to Communicate?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(3), pages 451-467, September.
- Verge, Thibaud & Malavolti-Grimal, Estelle & Loss, Frédéric, 2010. "Communication and Binary Decisions: Is it Better to Communicate?," Economics Papers from University Paris Dauphine 123456789/12189, Paris Dauphine University.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
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