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Strategic Information Transmission through the Media

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  • Jung, Hanjoon Michael

Abstract

We model media manipulation in which a sender or senders manipulate information through the media to influence receivers. We show that if there is only one sender who has a conditional preference for maintaining its credibility in reporting accurate information and if the receivers face a coordination situation without information about their opponents' types, the sender could influence the receivers to make decisions according to the sender's primary preference by manipulating the information through the media, which makes the report common knowledge. This is true even when the sender and the receivers have contradictory primary preferences. This result extends to the cases in which the sender has imperfect information or in which the sender's primary preference is to maintain its credibility. In the case of multiple senders, however, when there is enough competition among the senders or when simultaneous reporting takes place, the receivers could play their favored outcome against senders' preferences, which sheds light on a solution to the media manipulation problem.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5556.

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Date of creation: Aug 2007
Date of revision: Oct 2007
Handle: RePEc:pra:mprapa:5556

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Related research

Keywords: Arms Race; Common Knowledge; Information Transmission; Media Bias; Media Competition; Media Manipulation;

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Citations

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Cited by:
  1. Siddiqi, Hammad, 2007. "Stock Price Manipulation: The Role of Intermediaries," MPRA Paper 6374, University Library of Munich, Germany.
  2. Hanjoon Michael Jung, 2008. "Paradox of Credibility," Microeconomics Working Papers 22267, East Asian Bureau of Economic Research.
  3. Sandeep Baliga & Tomas Sjostrom, 2009. "The Strategy of Manipulating Conflict," Departmental Working Papers 200906, Rutgers University, Department of Economics.
  4. Jung, Hanjoon Michael, 2008. "Paradox of Credibility," MPRA Paper 7443, University Library of Munich, Germany.

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