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Communication Enhancement through Information Acquisition by Uninformed Player

Author

Listed:
  • Yasuyuki Miyahara

    (Kobe University)

  • Hitoshi Sadakane

    (Kyoto University)

Abstract

We analyze a situation in which an uninformed decision maker can gather information about states by paying a cost before communicating with an informed sender. We focus on multidimensional information gathering: the decision maker can determine how much time to allocate to gather information about each state. It is shown that communication can be enhanced under multidimensional information gathering compared with no information gathering. We also characterize the optimal investigation, which specifies the state the decision maker gathers information about. Our result demonstrates an advantage of multidimensional information gathering over single-dimensional information gathering.

Suggested Citation

  • Yasuyuki Miyahara & Hitoshi Sadakane, 2020. "Communication Enhancement through Information Acquisition by Uninformed Player," KIER Working Papers 1050, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:1050
    as

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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP1050.pdf
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    References listed on IDEAS

    as
    1. Watson, Joel, 1996. "Information Transmission When the Informed Party Is Confused," Games and Economic Behavior, Elsevier, vol. 12(1), pages 143-161, January.
    2. Olszewski, Wojciech, 2004. "Informal communication," Journal of Economic Theory, Elsevier, vol. 117(2), pages 180-200, August.
    3. Austen-Smith, David, 1994. "Strategic Transmission of Costly Information," Econometrica, Econometric Society, vol. 62(4), pages 955-963, July.
    4. 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.
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    6. Goltsman, Maria & Hörner, Johannes & Pavlov, Gregory & Squintani, Francesco, 2009. "Mediation, arbitration and negotiation," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1397-1420, July.
    7. Pei, Harry Di, 2015. "Communication with endogenous information acquisition," Journal of Economic Theory, Elsevier, vol. 160(C), pages 132-149.
    8. Krishna, Vijay & Morgan, John, 2004. "The art of conversation: eliciting information from experts through multi-stage communication," Journal of Economic Theory, Elsevier, vol. 117(2), pages 147-179, August.
    9. Junichiro Ishida & Takashi Shimizu, 2019. "Cheap talk when the receiver has uncertain information sources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(2), pages 303-334, September.
    10. Ivanov, Maxim, 2010. "Communication via a strategic mediator," Journal of Economic Theory, Elsevier, vol. 145(2), pages 869-884, March.
    11. Junichiro Ishida & Takashi Shimizu, 2009. "Cheap Talk with an Informed Receiver," ISER Discussion Paper 0746r, Institute of Social and Economic Research, Osaka University, revised Jun 2015.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cheap talk; Communication; Multidimensional information gathering; Strategic information transmission Technology choice; CES production function;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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