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Strategic information transmission networks

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  • Galeotti, Andrea
  • Ghiglino, Christian
  • Squintani, Francesco

Abstract

We study a model of multi-player communication. Privately informed decision makers have different preferences about the actions they take, and communicate to influence each othersʼ actions in their favor. We prove that the equilibrium capability of any player to send a truthful message to a set of players depends not only on the preference composition of those players, but also on the number of players truthfully communicating with each one of them. We establish that the equilibrium welfare depends not only on the number of truthful messages sent in equilibrium, but also on how evenly truthful messages are distributed across decision makers.

Suggested Citation

  • Galeotti, Andrea & Ghiglino, Christian & Squintani, Francesco, 2013. "Strategic information transmission networks," Journal of Economic Theory, Elsevier, vol. 148(5), pages 1751-1769.
  • Handle: RePEc:eee:jetheo:v:148:y:2013:i:5:p:1751-1769
    DOI: 10.1016/j.jet.2013.04.016
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    References listed on IDEAS

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    More about this item

    Keywords

    Cheap talk; Multi-agent communication; Networks; Organizations; Strategic communication;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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