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Strategic information transmission networks

Author

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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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    Cited by:

    1. Jackson, Matthew O. & Zenou, Yves, 2015. "Games on Networks," Handbook of Game Theory with Economic Applications, Elsevier.
    2. Myatt, David P & Wallace, Chris, 2017. "Information Acquisition and Use by Networked Players," CRETA Online Discussion Paper Series 32, Centre for Research in Economic Theory and its Applications CRETA.
    3. Monica Anna Giovanniello, 2017. "Echo Chambers: Voter-to-Voter Communication and Political Competition," 2017 Papers pgi364, Job Market Papers.
    4. Li, Zhuozheng & Rantakari, Heikki & Yang, Huanxing, 2016. "Competitive cheap talk," Games and Economic Behavior, Elsevier, vol. 96(C), pages 65-89.
    5. Junichiro Ishida & Takashi Shimizu, 2016. "Cheap talk with an informed receiver," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(1), pages 61-72, April.
    6. Prat, Andrea & de Martí, Joan & Calvó-Armengol, Antoni, 2015. "Communication and influence," Theoretical Economics, Econometric Society, vol. 10(2), May.
    7. Rong, Rong & Houser, Daniel & Dai, Anovia Yifan, 2016. "Money or friends: Social identity and deception in networks," European Economic Review, Elsevier, vol. 90(C), pages 56-66.
    8. repec:eee:matsoc:v:89:y:2017:i:c:p:20-31 is not listed on IDEAS
    9. Lai, Ernest K., 2014. "Expert advice for amateurs," Journal of Economic Behavior & Organization, Elsevier, vol. 103(C), pages 1-16.
    10. Billand, Pascal & Bravard, Christophe & Kamphorst, Jurjen & Sarangi, Sudipta, 2017. "Network formation when players seek confirmation of information," Mathematical Social Sciences, Elsevier, pages 20-31.
    11. Edoardo Gallo, 2014. "Communication networks in markets," Cambridge Working Papers in Economics 1431, Faculty of Economics, University of Cambridge.
    12. Garcia, Daniel, 2012. "Communication and Information Acquisition in Networks," MPRA Paper 55481, University Library of Munich, Germany, revised 24 Apr 2014.
    13. de Martí, Joan & Zenou, Yves, 2015. "Network games with incomplete information," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 221-240.
    14. Currarini, Sergio & Matheson, Jesse & Vega-Redondo, Fernando, 2016. "A simple model of homophily in social networks," European Economic Review, Elsevier, pages 18-39.

    More about this item

    Keywords

    Cheap talk; Multi-agent communication; Networks; Organizations; Strategic communication;

    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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