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Strategic Communication with a Small Conflict of Interest

Author

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  • Francesc Dilmé

    (University of Bonn)

Abstract

This paper analyzes strategic information transmission between a sender and a receiver with similar objectives. We provide a first-order approximation of the equilibrium behavior in the general version of the Crawford and Sobel’s (1982) model with a small bias. Our analysis goes beyond the usual uniform-quadratic setting: we uncover how the state-dependent bias and the non-uniform state distribution influence the precision with which each state of the world is communicated. We illustrate the approach by providing novel comparative statics results in different applications.

Suggested Citation

  • Francesc Dilmé, 2022. "Strategic Communication with a Small Conflict of Interest," ECONtribute Discussion Papers Series 148, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:148
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    References listed on IDEAS

    as
    1. Inga Deimen & Dezső Szalay, 2019. "Delegated Expertise, Authority, and Communication," American Economic Review, American Economic Association, vol. 109(4), pages 1349-1374, April.
    2. Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008. "Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 46(4), pages 910-945, December.
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    17. repec:pri:cepsud:161blinder is not listed on IDEAS
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    More about this item

    Keywords

    Strategic Communication; Small Bias;

    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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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