IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v163y2018icp186-189.html
   My bibliography  Save this article

When does monitoring hurt? Endogenous information acquisition in a game of persuasion

Author

Listed:
  • Wong, Tsz-Ning
  • Yang, Lily Ling

Abstract

We study a persuasion game between a decision maker and an expert. Before communication, the expert searches for an evidence about the state of nature. Higher effort leads to a higher probability of discovery. We show that, contrary to everyday experiences, monitoring of effort is always suboptimal if the expert’s bias is large, yet sometimes optimal if the expert’s bias is small.

Suggested Citation

  • Wong, Tsz-Ning & Yang, Lily Ling, 2018. "When does monitoring hurt? Endogenous information acquisition in a game of persuasion," Economics Letters, Elsevier, vol. 163(C), pages 186-189.
    • Handle: RePEc:eee:ecolet:v:163:y:2018:i:c:p:186-189
    DOI: 10.1016/j.econlet.2017.12.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176517304901
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2017.12.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Emeric Henry, 2009. "Strategic Disclosure of Research Results: The Cost of Proving Your Honesty," Economic Journal, Royal Economic Society, vol. 119(539), pages 1036-1064, July.
    2. Paul Milgrom & John Roberts, 1986. "Relying on the Information of Interested Parties," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 18-32, Spring.
    3. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Claude Fluet & Thomas Lanzi, 2021. "Cross-Examination," Working Papers of BETA 2021-40, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Tsz-Ning Wong & Lily Ling Yang & Andrey Zhukov, 2024. "Optimal Disclosure Mandate in Supply Chains," CRC TR 224 Discussion Paper Series crctr224_2024_560, University of Bonn and University of Mannheim, Germany.
    3. Tsz-Ning Wong & Lily Ling Yang & Andrey Zhukov, 2024. "Optimal Disclosure Mandate in Supply Chains," UB School of Economics Working Papers 2024/468, University of Barcelona School of Economics.
    4. Jiménez-Martínez, Antonio & Melguizo-López, Isabel, 2024. "Evidence disclosure with heterogeneous priors," Mathematical Social Sciences, Elsevier, vol. 132(C), pages 69-74.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gregor Martin, 2015. "To Invite or Not to Invite a Lobby, That Is the Question," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 15(2), pages 143-166, July.
    2. Claude Fluet & Thomas Lanzi, 2021. "Cross-Examination," Working Papers of BETA 2021-40, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Winand Emons & Claude Fluet, 2019. "Strategic communication with reporting costs," Theory and Decision, Springer, vol. 87(3), pages 341-363, October.
    4. Daniel Stone, 2011. "A signal-jamming model of persuasion: interest group funded policy research," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(3), pages 397-424, September.
    5. Martin Gregor, 2014. "Receiver's access fee for a single sender," Working Papers IES 2014/17, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2014.
    6. Hedlund, Jonas, 2017. "Bayesian persuasion by a privately informed sender," Journal of Economic Theory, Elsevier, vol. 167(C), pages 229-268.
    7. Yingni Guo, 2021. "Information transmission and voting," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 835-868, October.
    8. Ambec, Stefan & Coria, Jessica, 2024. "Environmental Regulation Informed by Biased Stakeholders," TSE Working Papers 24-1604, Toulouse School of Economics (TSE).
    9. Sylvain Bourjade & Bruno Jullien, 2011. "The roles of reputation and transparency on the behavior of biased experts," RAND Journal of Economics, RAND Corporation, vol. 42(3), pages 575-594, September.
    10. Li, Run, 2022. "Full revelation of expertise before disclosure," Economics Letters, Elsevier, vol. 221(C).
    11. Martin Gregor, 2014. "Access fees for competing lobbies," Working Papers IES 2014/22, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jul 2014.
    12. Hedlund, Jonas, 2015. "Persuasion with communication costs," Games and Economic Behavior, Elsevier, vol. 92(C), pages 28-40.
    13. Simon Board & Jay Lu, 2018. "Competitive Information Disclosure in Search Markets," Journal of Political Economy, University of Chicago Press, vol. 126(5), pages 1965-2010.
    14. Péter Eso & Balázs Szentes, 2004. "The Price of Advice," Discussion Papers 1416, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    15. Persson, Petra, 2018. "Attention manipulation and information overload," Behavioural Public Policy, Cambridge University Press, vol. 2(1), pages 78-106, May.
    16. Shuo Liu & Dimitri Migrow, 2019. "Designing organizations in volatile markets," ECON - Working Papers 319, Department of Economics - University of Zurich.
    17. T. Tony Ke & Jiwoong Shin & Jungju Yu, 2023. "A Model of Product Portfolio Design: Guiding Consumer Search Through Brand Positioning," Marketing Science, INFORMS, vol. 42(6), pages 1101-1124, November.
    18. Frédéric Koessler & Françoise Forges, 2008. "Multistage Communication With And Without Verifiable Types," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 145-164.
    19. Bennedsen, Morten & Feldmann, Sven E., 2006. "Informational lobbying and political contributions," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 631-656, May.
    20. Shmuel Leshem, 2010. "The benefits of a right to silence for the innocent," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 398-416, June.

    More about this item

    Keywords

    Information acquisition; Persuasion; Voluntary disclosure;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:163:y:2018:i:c:p:186-189. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.