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How to Talk to Multiple Audiences

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Abstract

We analyze the performance of various communication protocols in a generalization of the Crawford-Sobel (1982) model of cheap talk that allows for multiple receivers. We find that whenever the sender can communicate informatively with both receivers by sending private messages, she can communicate informatively by sending public messages. In particular, it is possible that informative communication with one or both receivers is impossible in private, but possible in public. When the sender is allowed to send both public and private messages, it is possible for the sender to combine the commitment provided by public communication with the flexibility provided by private communication and transmit more information to the receivers than under either private or public communication scenarios. When the players can communicate through a mediator and the receivers are biased in the same direction, it is optimal for the sender to communicate with the receivers through independent private noisy communication channels. It is in general optimal to take advantage of pooling the sender’s truthtelling constraints across the receivers when they are biased in the opposite directions.

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Bibliographic Info

Paper provided by University of Western Ontario, Department of Economics in its series UWO Department of Economics Working Papers with number 20081.

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Date of creation: 2008
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Handle: RePEc:uwo:uwowop:20081

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Postal: Department of Economics, Reference Centre, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2
Phone: 519-661-2111 Ext.85244
Web page: http://economics.uwo.ca/research/research_papers/department_working_papers.html

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Keywords: Communication; Information; Mechanism design; Cheap talk; Long Cheap talk; Multiple audiences;

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References

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Citations

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Cited by:
  1. Liang, Pinghan, 2013. "Optimal delegation via a strategic intermediary," MPRA Paper 45271, University Library of Munich, Germany.
  2. Sandeep Baliga & Tomas Sjostrom, 2009. "The Strategy of Manipulating Conflict," Departmental Working Papers 200906, Rutgers University, Department of Economics.
  3. Mikhail Golosov & Vasiliki Skreta & Aleh Tsyvinski & Andrea Wilson, 2011. "Dynamic Strategic Information Transmission," Cowles Foundation Discussion Papers 1802, Cowles Foundation for Research in Economics, Yale University, revised Jun 2011.
  4. Battaglini, Marco & Makarov, Uliana, 2014. "Cheap talk with multiple audiences: An experimental analysis," Games and Economic Behavior, Elsevier, vol. 83(C), pages 147-164.
  5. Battaglini, Marco & Makarov, Uliana, 2010. "Cheap Talk with Multiple Audiences: an Experimental Analysis," CEPR Discussion Papers 8146, C.E.P.R. Discussion Papers.
  6. McGee, Andrew & Yang, Huanxing, 2013. "Cheap talk with two senders and complementary information," Games and Economic Behavior, Elsevier, vol. 79(C), pages 181-191.
  7. Duran, Mihael, 2013. "Board directors' preferences: What are good aggregation rules?," University of Tuebingen Working Papers in Economics and Finance 57, University of Tuebingen, Faculty of Economics and Social Sciences.
  8. Mikhail Drugov & Roberto Hernán-González & Praveen Kujal & Marta Troya Martinez, 2013. "Cheap Talk with Two Audiences: An Experiment," Working Papers 13-32, Chapman University, Economic Science Institute.
  9. Wang, Yun, 2013. "The result of world powers in WTO: A cheap-talk game under different communication protocols," China Economic Review, Elsevier, vol. 27(C), pages 192-207.
  10. repec:hal:wpaper:halshs-00652279 is not listed on IDEAS
  11. Koessler, Frédéric & Martimort, David, 2012. "Optimal delegation with multi-dimensional decisions," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1850-1881.
  12. Heski Bar-Isaac & Joyee Deb, 2012. "Reputation for a Servant of Two Masters," Working Papers 12-08, New York University, Leonard N. Stern School of Business, Department of Economics.
  13. Rantakari, Heikki, 2014. "A simple model of project selection with strategic communication and uncertain motives," Journal of Economic Behavior & Organization, Elsevier, vol. 102(C), pages 14-42.
  14. Kfir Eliaz & Roberto Serrano, 2014. "Sending information to interactive receivers playing a generalized prisoners’ dilemma," International Journal of Game Theory, Springer, vol. 43(2), pages 245-267, May.
  15. Liang, Pinghan, 2013. "Optimal delegation via a strategic intermediary," Games and Economic Behavior, Elsevier, vol. 82(C), pages 15-30.
  16. Andrea Galeotti & Christian Ghiglino & Francesco Squintani, 2009. "Strategic Information Transmission in Networks," Economics Discussion Papers 668, University of Essex, Department of Economics.
  17. Jeanne Hagenbach & Frédéric Koessler, 2011. "Full Disclosure in Decentralized Organizations," PSE Working Papers halshs-00652279, HAL.

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