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Strategic information transmission and stochastic orders

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  • Szalay, Dezsö

Abstract

I develop new results on uniqueness and comparative statics of equilibria in the Crawford and Sobel (1982) strategic information transmission game. For a class of utility functions, I demonstrate that logconcavity of the density implies uniqueness of equilibria inducing a given number of Receiver actions. I provide comparative statics results with respect to the distribution of types for distributions that are comparable in the likelihood ratio order, implying, e.g., that advice from a better informed Sender induces the Receiver to choose actions that are more spread out.

Suggested Citation

  • Szalay, Dezsö, 2012. "Strategic information transmission and stochastic orders," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 386, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:386
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    File URL: https://epub.ub.uni-muenchen.de/14011/1/386.pdf
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    References listed on IDEAS

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      • Archishman Chakraborty & Rick Harbaugh, 2006. "Persuasion by Cheap Talk," Working Papers 2006-10, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy, revised Oct 2009.
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    16. Juan-JosÈ Ganuza & JosÈ S. Penalva, 2010. "Signal Orderings Based on Dispersion and the Supply of Private Information in Auctions," Econometrica, Econometric Society, vol. 78(3), pages 1007-1030, May.
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    Citations

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    Cited by:

    1. Inga Deimen & Dezső Szalay, 2019. "Delegated Expertise, Authority, and Communication," American Economic Review, American Economic Association, vol. 109(4), pages 1349-1374, April.
    2. Ying Chen & Sidartha Gordon, 2015. "Information transmission in nested sender–receiver games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 58(3), pages 543-569, April.
    3. Dilmé, Francesc, 2022. "Strategic communication with a small conflict of interest," Games and Economic Behavior, Elsevier, vol. 134(C), pages 1-19.
    4. repec:hal:wpspec:info:hdl:2441/5adcidkke9omt0s9p6m01j1rh is not listed on IDEAS
    5. Qianjun Lyu & Wing Suen & Yimeng Zhang, 2023. "Coarse Information Design," Papers 2305.18020, arXiv.org, revised Oct 2023.
    6. Evans, R., Reiche, S. & Reiche, S., 2022. "When is a Contrarian Adviser Optimal?," Cambridge Working Papers in Economics 2222, Faculty of Economics, University of Cambridge.
    7. Ying Chen & Sidartha Gordon, 2014. "Information Transmission in Nested Sender-Receiver Games," SciencePo Working papers Main hal-00973071, HAL.
    8. Szalay, Dezső & Deimen, Inga, 2020. "Authority in a theory of the firm," CEPR Discussion Papers 15026, C.E.P.R. Discussion Papers.
    9. Lee, Yong-Ju & Lim, Wooyoung & Zhao, Chen, 2023. "Cheap talk with prior-biased inferences," Games and Economic Behavior, Elsevier, vol. 138(C), pages 254-280.
    10. repec:hal:spmain:info:hdl:2441/5adcidkke9omt0s9p6m01j1rh is not listed on IDEAS
    11. Ying Chen & Sidartha Gordon, 2014. "Information Transmission in Nested Sender-Receiver Games," SciencePo Working papers hal-00973071, HAL.

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    More about this item

    Keywords

    strategic information transmission; cheap talk; uniqueness; comparative statics; logconcavity; likelihood ratio order;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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