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Cheap Talk and Editorial Control

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  • Newton Jonathan

    (School of Economics, University of Sydney, Sydney, NSW 2006, Australia)

Abstract

This paper analyzes simple models of editorial control. Starting from the framework developed by Krishna and Morgan (2001a), we analyze two-sender models of cheap talk where one or more of the senders has the power to veto messages before they reach the receiver. A characterization of the most informative equilibria of such models is given. It is shown that editorial control never aids communication and that for small biases in the senders’ preferences relative to those of the receiver, necessary and sufficient conditions for information transmission to be adversely affected are (i) that the senders have opposed preferences relative to the receiver and (ii) that both senders have powers of editorial control. It is shown that the addition of further senders beyond two weakly decreases information transmission when senders exercising editorial control are anonymous, and weakly increases information transmission when senders exercising editorial control are observed.

Suggested Citation

  • Newton Jonathan, 2014. "Cheap Talk and Editorial Control," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 14(1), pages 1-25, February.
    • Handle: RePEc:bpj:bejtec:v:14:y:2014:i:1:p:25:n:3
    DOI: 10.1515/bejte-2013-0002
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    References listed on IDEAS

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    1. Sourav Bhattacharya & Arijit Mukherjee, 2013. "Strategic information revelation when experts compete to influence," RAND Journal of Economics, RAND Corporation, vol. 44(3), pages 522-544, September.
    2. Chen, Ying, 2011. "Perturbed communication games with honest senders and naive receivers," Journal of Economic Theory, Elsevier, vol. 146(2), pages 401-424, March.
    3. Sourav Bhattacharya & Arijit Mukherjee, 2011. "Strategic Information Revelation when Experts Compete to Influence," Working Paper 453, Department of Economics, University of Pittsburgh, revised Jan 2013.
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    Cited by:

    1. Bhattacharya, Sourav & Goltsman, Maria & Mukherjee, Arijit, 2018. "On the optimality of diverse expert panels in persuasion games," Games and Economic Behavior, Elsevier, vol. 107(C), pages 345-363.
    2. Basov Suren & Danilkina Svetlana, 2015. "Bertrand Oligopoly with Boundedly Rational Consumers," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 15(1), pages 1-17, January.

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