Learning More by Doing Less
A principal must decide whether to implement each of two independent proposals (e.g., earmark requests, policy reforms, grant funding) of unknown quality. Each proposal is represented by an agent who advocates by producing evidence about quality. Although the principal prefers the most-informative evidence, agents strategically choose less-informative evidence to maximize the probability the principal implements their proposals. In this setting, we show how limited capacity (i.e., the ability of the principal to implement at most one of the two proposals) can motivate agents to produce more-informative evidence in an effort to convince the principal that their proposal is better than the alternative. We derive reasonable conditions under which the principal prefers limited capacity to unlimited capacity.
|Date of creation:||2011|
|Date of revision:|
|Publication status:||Forthcoming: Working|
|Contact details of provider:|| Postal: P.O. Box 248126, Coral Gables, FL 33124-6550|
Phone: (305) 284-5540
Fax: (305) 284-2985
Web page: http://www.bus.miami.edu/faculty-and-research/academic-departments/economics/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bull, Jesse & Watson, Joel, 2002.
"Evidence Disclosure and Verfiability,"
University of California at San Diego, Economics Working Paper Series
qt19p7z2gm, Department of Economics, UC San Diego.
- Bull, Jesse & Watson, Joel, 2000. "Evidence Disclosure and Verifiability," University of California at San Diego, Economics Working Paper Series qt6th0060j, Department of Economics, UC San Diego.
- Liad Wagman & Vincent Conitzer, 2012.
"Choosing fair lotteries to defeat the competition,"
International Journal of Game Theory,
Springer;Game Theory Society, vol. 41(1), pages 91-129, February.
- Emir Kamenica & Matthew Gentzkow, 2009.
NajEcon Working Paper Reviews
- Paul R. Milgrom, 1981.
"Good News and Bad News: Representation Theorems and Applications,"
Bell Journal of Economics,
The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
- Paul R. Milgrom, 1979. "Good Nevs and Bad News: Representation Theorems and Applications," Discussion Papers 407R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09iatr74eao is not listed on IDEAS
- Cotton, Christopher, 2009.
"Should we tax or cap political contributions? A lobbying model with policy favors and access,"
Journal of Public Economics,
Elsevier, vol. 93(7-8), pages 831-842, August.
- Christopher Cotton, 2008. "Should We Tax or Cap Political Contributions? A Lobbying Model with Policy Favors and Access," Working Papers 0901, University of Miami, Department of Economics.
- Emeric Henry, 2009. "Strategic Disclosure of Research Results: The Cost of Proving Your Honesty," Economic Journal, Royal Economic Society, vol. 119(539), pages 1036-1064, 07.
- Emeric Henry, 2009.
"Disclosure of research results: the cost of proving your honesty,"
Sciences Po publications
info:hdl:2441/eu4vqp9ompq, Sciences Po.
- Emeric Henry, 2009. "Disclosure of research results: the cost of proving your honesty," Post-Print hal-01023670, HAL.
- Matthew Gentzkow & Emir Kamenica, 2011. "Competition in Persuasion," NBER Working Papers 17436, National Bureau of Economic Research, Inc.
- Yeon-Koo Che & Navin Kartik, 2009.
"Opinions as Incentives,"
Journal of Political Economy,
University of Chicago Press, vol. 117(5), pages 815-860, October.
- Paul R. Milgrom & John Roberts, 1985.
"Relying on the Information of Interested Parties,"
Cowles Foundation Discussion Papers
749, Cowles Foundation for Research in Economics, Yale University.
When requesting a correction, please mention this item's handle: RePEc:mia:wpaper:2011-6. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher Parmeter)
If references are entirely missing, you can add them using this form.