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Communication via Third Parties

Author

Listed:
  • Jacopo Bizzotto

    (Oslo Business School - OsloMet)

  • Eduardo Perez-Richet

    (Sciences Po)

  • Adrien Vigier

    (University of Oxford - Department of Economics)

Abstract

We consider a general information design problem in which the task of running a procedure generating information for a continuation game is performed by an agent. A moral hazard roblem therefore emerges in which the principal faces a trade-off between generating information with an eye to the continuation game, and incentivizing the agent to comply with the procedure designed. We provide a methodology to tackle such problems, and examine the way in which moral hazard affects the optimal procedure of the principal.

Suggested Citation

  • Jacopo Bizzotto & Eduardo Perez-Richet & Adrien Vigier, 2020. "Communication via Third Parties," Working Papers 202006, Oslo Metropolitan University, Oslo Business School.
  • Handle: RePEc:oml:wpaper:202006
    DOI: 10.2139/ssrn.3530804
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    Cited by:

    1. is not listed on IDEAS
    2. Gerardi, Dino & Grillo, Edoardo & Monzón, Ignacio, 2022. "The perils of friendly oversight," Journal of Economic Theory, Elsevier, vol. 204(C).
    3. Jacopo Bizzotto & Adrien Vigier, 2022. "A Case for Tiered School Systems," Working Papers 202205, Oslo Metropolitan University, Oslo Business School.

    More about this item

    Keywords

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    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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