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Mass Media in Economics: Origins and Subsequent Contributions

Author

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  • Ascensión Andina Díaz

    (Department of Economic Theory, Universidad de Málaga)

Abstract

An expert 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 expert competing for the receiver's approval and the latter doubts about the objectives of experts, they each have an incentive to make the receiver believe she is the only truthful expert in the population. If they succeed, no truthful equilibrium exists. In this scenario, we show that it may be in the receiver's interest to be ambiguous about his motives as, if prospering, he could guarantee revelation of information by (at least) outcome concerned experts.

Suggested Citation

  • Ascensión Andina Díaz, 2011. "Mass Media in Economics: Origins and Subsequent Contributions," Working Papers 2011-02, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    • Handle: RePEc:mal:wpaper:2011-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Multiple experts; approval; two sided incomplete information;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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