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Cheap talk with two senders and complementary information

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  • McGee, Andrew
  • Yang, Huanxing

Abstract

This paper studies a cheap talk model in which two senders having partial and non-overlapping private information simultaneously communicate with an uninformed receiver. The sensitivity of the receiverʼs ideal action to one senderʼs private information depends on the other senderʼs private information. We show that the sendersʼ information transmissions exhibit strategic complementarity: more information transmitted by one sender leads to more information being transmitted by the other sender.

Suggested Citation

  • McGee, Andrew & Yang, Huanxing, 2013. "Cheap talk with two senders and complementary information," Games and Economic Behavior, Elsevier, vol. 79(C), pages 181-191.
  • Handle: RePEc:eee:gamebe:v:79:y:2013:i:c:p:181-191
    DOI: 10.1016/j.geb.2013.02.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Schopohl, Simon, 2016. "Communication games with optional verification," Center for Mathematical Economics Working Papers 569, Center for Mathematical Economics, Bielefeld University.
    2. Li, Zhuozheng & Rantakari, Heikki & Yang, Huanxing, 2016. "Competitive cheap talk," Games and Economic Behavior, Elsevier, vol. 96(C), pages 65-89.
    3. Saak, Alexander E. & Hennessy, David A., 2016. "A model of reporting and controlling outbreaks by public health agencies:," IFPRI discussion papers 1529, International Food Policy Research Institute (IFPRI).
    4. Saak, Alexander E., 2012. "Infectious disease detection with private information:," IFPRI discussion papers 1162, International Food Policy Research Institute (IFPRI).
    5. Ayça Özdoðan, 2016. "A Survey of Strategic Communication and Persuasion," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(1), pages 1-21.
    6. A.K.S. Chand, 2012. "Strategic Information Transmission with Budget Constraint," Working Papers 2012_19, Department of Economics, University of Venice "Ca' Foscari".
    7. Ambrus, Attila & Lu, Shih En, 2014. "Almost fully revealing cheap talk with imperfectly informed senders," Games and Economic Behavior, Elsevier, vol. 88(C), pages 174-189.

    More about this item

    Keywords

    Cheap talk; Multiple senders;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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