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Competition in Signaling

Author

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  • Federico Vaccari

    (Department of Economics and Management, University of Trento)

Abstract

I study a multi-sender signaling game between an uninformed decision maker and two senders with common private information and conflicting interests. Senders can misreport information at a cost that is tied to the size of the misrepresentation. The main results concern the amount of information that is transmitted in equilibrium and the language used by senders to convey such information. Fully revealing and pure-strategy equilibria exist but are not plausible. I first identify sufficient conditions under which equilibria are essentially unique, robust, and always exist, and then deliver a complete characterization of these equilibria. As an application, I study the informative value of different judicial procedures.

Suggested Citation

  • Federico Vaccari, 2022. "Competition in Signaling," Working Papers 2022.38, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2022.38
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    Cited by:

    1. is not listed on IDEAS
    2. Vaccari, Federico, "undated". "Efficient Communication in Organizations," FEEM Working Papers 329583, Fondazione Eni Enrico Mattei (FEEM).
    3. Federico Vaccari, 2023. "Influential news and policy-making," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1363-1418, November.

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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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