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Lobbying with two audiences: Public vs private certification

Author

Listed:
  • Frédéric Koessler

    (PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This paper compares public and private information certification in a simple class of communication games with one sender and two receivers. It is shown that, contrary to the cheap talk setting of [Farrell, J., Gibbons, R., 1989. Cheap talk with two audiences. American Economic Review 79, 1214-1223], allowing certifiable statements excludes mutual discipline (i.e., full information revelation in public but not in private) but allows for mutual subversion (i.e., full information revelation in private but not in public). In the latter case, the sender is always better off with public communication, while in other situations he may prefer either private or public communication. Compared to the previous models of strategic information revelation the paper also emphasizes the role of the "common belief " consistency condition of the strong version of sequential equilibrium.

Suggested Citation

  • Frédéric Koessler, 2008. "Lobbying with two audiences: Public vs private certification," PSE-Ecole d'économie de Paris (Postprint) halshs-00754290, HAL.
    • Handle: RePEc:hal:pseptp:halshs-00754290
    DOI: 10.1016/j.mathsocsci.2007.10.003
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    References listed on IDEAS

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    1. Masahiro Okuno-Fujiwara & Andrew Postlewaite & Kotaro Suzumura, 1990. "Strategic Information Revelation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 25-47.
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    Citations

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    Cited by:

    1. Kfir Eliaz & Roberto Serrano, 2014. "Sending information to interactive receivers playing a generalized prisoners’ dilemma," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(2), pages 245-267, May.
    2. Jeanne Hagenbach & Frédéric Koessler, 2010. "Strategic Communication Networks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(3), pages 1072-1099.
    3. Foerster, Manuel, 2019. "Dynamics of strategic information transmission in social networks," Theoretical Economics, Econometric Society, vol. 14(1), January.
    4. Kfir Eliaz & Roberto Serrano, 2010. "Sending Information to Interactive Receivers Playing a Generalized Prisoners Dilemma," Working Papers 2010-16, Brown University, Department of Economics.
    5. Schipper, Burkhard C. & Woo, Hee Yeul, 2019. "Political Awareness, Microtargeting of Voters, and Negative Electoral Campaigning," Quarterly Journal of Political Science, now publishers, vol. 14(1), pages 41-88, January.
    6. Hagenbach, Jeanne & Koessler, Frédéric, 2016. "Full disclosure in decentralized organizations," Economics Letters, Elsevier, vol. 139(C), pages 5-7.
    7. Goltsman, Maria & Pavlov, Gregory, 2011. "How to talk to multiple audiences," Games and Economic Behavior, Elsevier, vol. 72(1), pages 100-122, May.
    8. Burkhard Schipper & Hee Yeul Woo, 2014. "Political Awareness, Microtargeting of Voters, and Negative Electoral Campaigning," Working Papers 148, University of California, Davis, Department of Economics.
    9. Ertac, Seda & Koçkesen, Levent & Ozdemir, Duygu, 2016. "The role of verifiability and privacy in the strategic provision of performance feedback: Theory and experimental evidence," Games and Economic Behavior, Elsevier, vol. 100(C), pages 24-45.
    10. Ertac, Seda & Gümren, Mert & Koçkesen, Levent, 2019. "Strategic feedback in teams: Theory and experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 1-23.
    11. Wang, Yun, 2013. "The result of world powers in WTO: A cheap-talk game under different communication protocols," China Economic Review, Elsevier, vol. 27(C), pages 192-207.
    12. Orhun, Eda, 2019. "Voluntary disclosure and market competition: Theory and evidence from the U.S. services sector," Research in International Business and Finance, Elsevier, vol. 47(C), pages 354-370.

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    More about this item

    Keywords

    Certifiable information; Cheap talk; Consistency of beliefs; Communication to multiple audiences;
    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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