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A Theory of Multidimensional Information Disclosure

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  • Wataru Tamura

Abstract

We study disclosure of information about the multidimensional state of the world when uninformed receivers' actions affect the sender's utility. Given a disclosure rule, the receivers form an expectation about the state following each message. Under the assumption that the sender's expected utility is written as the expected value of a quadratic function of those conditional expectations, we identify conditions under which full and no disclosure is optimal for the sender and show that a linear transformation of the state is optimal if it is normally distributed. We apply our theory to advertising, political campaigning, and monetary policy.

Suggested Citation

  • Wataru Tamura, 2012. "A Theory of Multidimensional Information Disclosure," ISER Discussion Paper 0828, Institute of Social and Economic Research, Osaka University.
    • Handle: RePEc:dpr:wpaper:0828
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    File URL: https://www.iser.osaka-u.ac.jp/library/dp/2012/DP0828.pdf
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    References listed on IDEAS

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