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Receiver's access fee for a single sender

Author

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  • Martin Gregor

    () (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)

Abstract

We study a game in which a sender with verifiable private information has to pay an access fee that is announced by a receiver to be able to convey her message to the receiver. The setting is motivated by the literature of pay-and-lobby politics, which finds that politicians decide to schedule informative meetings with lobbyists on the basis of their campaign contributions. We solve the game for all timings, prior beliefs, and noise and valuation parameters. We identify the receiver's tradeoff between the amount of information and the amount of revenue. At the tradeoff, the receiver decides to not receive an informative signal from the sender. Whether `burying one's head in the sand' increases or decreases welfare depends on the degree of the receiver's benevolence.

Suggested Citation

  • Martin Gregor, 2014. "Receiver's access fee for a single sender," Working Papers IES 2014/17, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2014.
  • Handle: RePEc:fau:wpaper:wp2014_17
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    File URL: http://ies.fsv.cuni.cz/sci/publication/show/id/5091/lang/cs
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    References listed on IDEAS

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    Cited by:

    1. Martin Gregor, 2014. "Access fees for competing lobbies," Working Papers IES 2014/22, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jul 2014.

    More about this item

    Keywords

    disclosure; persuasion; hard evidence; access fee; lobbying;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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