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Manipulative Disclosure

Author

Listed:
  • Mezzetti, Claudio

    (University of Queensland & University of Warwick)

Abstract

This paper studies disclosure of verifiable information by a privately informed expert. It shows that if the direction of the expert’s bias is uncertain, then a positive measure of expert types manipulate the decision maker fully, inducing her to choose their ideal outcome. Most other types manipulate partially. The decision maker obtains her first best outcome only if the expert is unbiased or the state of the world is a boundary point of the state space and the expert prefers a more extreme outcome. Experts benefit from being poker faced and the decision maker’s lack of familiarity with the problem.

Suggested Citation

  • Mezzetti, Claudio, 2020. "Manipulative Disclosure," The Warwick Economics Research Paper Series (TWERPS) 1250, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1250
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2020/twerp_1250_-_mezzetti.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Verifiable disclosure of information ; experts and decision makers ; manipulation ; pooling ; senders and receivers ; skepticism ; uncertain bias ; unravelling JEL codes: D44 ; D82;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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