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Communication Enhancement through Information Acquisition by Uninformed Player

Author

Listed:
  • Yasuyuki Miyahara

    (Kobe University)

  • Hitoshi Sadakane

    (Kyoto University)

Abstract

We analyze a situation in which an uninformed decision maker can gather information about states by paying a cost before communicating with an informed sender. We focus on multidimensional information gathering: the decision maker can determine how much time to allocate to gather information about each state. It is shown that communication can be enhanced under multidimensional information gathering compared with no information gathering. We also characterize the optimal investigation, which specifies the state the decision maker gathers information about. Our result demonstrates an advantage of multidimensional information gathering over single-dimensional information gathering.

Suggested Citation

  • Yasuyuki Miyahara & Hitoshi Sadakane, 2020. "Communication Enhancement through Information Acquisition by Uninformed Player," KIER Working Papers 1050, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:1050
    as

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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP1050.pdf
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    References listed on IDEAS

    as
    1. Austen-Smith, David, 1994. "Strategic Transmission of Costly Information," Econometrica, Econometric Society, vol. 62(4), pages 955-963, July.
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    6. Pei, Harry Di, 2015. "Communication with endogenous information acquisition," Journal of Economic Theory, Elsevier, vol. 160(C), pages 132-149.
    7. Junichiro Ishida & Takashi Shimizu, 2019. "Cheap talk when the receiver has uncertain information sources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(2), pages 303-334, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cheap talk; Communication; Multidimensional information gathering; Strategic information transmission Technology choice; CES production function;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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