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Information transmission in persuasion models with imperfect verification

Author

Listed:
  • Silva, Francisco

    (Department of Economics, Deakin University)

Abstract

I study a persuasion game between a privately informed agent and a decision maker (DM) who can imperfectly verify the statements made by the agent by observing a signal that is correlated with the agent's information. I find that whether or not the DM benefits from communicating with the agent depends on whether the DM's signal and the agent's private information satisfy a weak affiliation condition. I then discuss the significance of this result to the debate over the use of self-appraisals in business. I argue that, in general, self-appraisals are only useful when the workers' abilities are multidimensional.

Suggested Citation

  • Silva, Francisco, 0. "Information transmission in persuasion models with imperfect verification," Theoretical Economics, Econometric Society.
    • Handle: RePEc:the:publsh:5578
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    More about this item

    Keywords

    Communication; verification; self-appraisals; mechanism design;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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