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A case for Ambiguity

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Author Info

  • Ascención Andina-Díaz

    ()
    (Department of Economic Theory, Universidad de Málaga)

Abstract

A sender wishes to be approved by a receiver, who is outcome concerned. She then has an incentive to send an informative message. But if there is more than one sender competing for the receiver's approval and the latter doubts about the objectives of senders, they each have an incentive to fool the receiver and look as the only truthful sender in the population. If they succeed, no truthful equilibrium exists. In this scenario, we show that it may be in the decision maker's interest to be ambiguous about his motives as, if prospering, he could guarantee revelation of information by (at least) outcome concerned senders.

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File URL: http://webdeptos.uma.es/THEconomica/malagawpseries/Papers/METCwp2009-8.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center in its series Working Papers with number 2009-8.

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Length: 17 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:mal:wpaper:2009-8

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Keywords: Multiple experts; approval; two sided incomplete information;

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