Anonymity, Equal Treatment, and Overconfidence: Constraints on Communication May Enhance Information Transmission
This paper offers a simple but rich framework to study communication subject to various constraints such as anonymity requirements, equal treatment of multiple agents, overconfidence of an expert, and garbling, by extending the cheap talk model of Crawford and Sobel (1982). Common to these seemingly distinct types of constraints in communication is that the action by a decision maker is less sensitive to a message than without such constraints. Reduced sensitivity can alter the structure of informative equilibria dramatically, and leads to a type of informational distortion, termed incentives to exaggerate, which differs qualitatively from the well-known incentives to overstate/understate. We demonstrate that the two different types of distortion may partly offset each other, so the introduction of the costraints may be beneficial when the level to conflict between communicating parties is large. Our model can also be applied to study communication in public good provision where equal treatment is often implicitly assumed.
|Date of creation:||01 Jun 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.economics.ox.ac.uk/
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.:
- Krishna, V. & Morgan, J., 1999.
"A Model of Expertise,"
206, Princeton, Woodrow Wilson School - Public and International Affairs.
- Marco Battaglini, 2002.
"Multiple Referrals and Multidimensional Cheap Talk,"
Econometric Society, vol. 70(4), pages 1379-1401, July.
- Marco Battaglini, 2000. "Multiple Referrals and Multidimensional Cheap Talk," Econometric Society World Congress 2000 Contributed Papers 1557, Econometric Society.
- Marco Battaglini, 1999. "Multiple Referrals and Multidimensional Cheap Talk," Discussion Papers 1295, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Simon Gervais & Terrance Odean, .
"Learning To Be Overconfident,"
Rodney L. White Center for Financial Research Working Papers
5-97, Wharton School Rodney L. White Center for Financial Research.
- Simon Gervais & Terrance Odean, . "Learning To Be Overconfident," Rodney L. White Center for Financial Research Working Papers 05-97, Wharton School Rodney L. White Center for Financial Research.
- Forges, F., 1984.
"An approach to communication equilibria,"
CORE Discussion Papers
1984035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Crawford, Vincent P & Sobel, Joel, 1982.
"Strategic Information Transmission,"
Econometric Society, vol. 50(6), pages 1431-51, November.
- Roger B. Myerson, 1984.
"Multistage Games with Communication,"
590, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Kent Daniel & David Hirshleifer & Avanidhar Subrahmanyam, 1998. "Investor Psychology and Security Market Under- and Overreactions," Journal of Finance, American Finance Association, vol. 53(6), pages 1839-1885, December.
- Jose A. Scheinkman & Wei Xiong, 2003. "Overconfidence and Speculative Bubbles," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1183-1219, December.
- Kay Mitusch & Roland Strausz, 2005.
"Mediation in Situations of Conflict and Limited Commitment,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 21(2), pages 467-500, October.
- Roland Strausz & Kay Mitusch, . "Mediation in Situations of Conflict and Limited Commitment," Papers 023, Departmental Working Papers.
- Mitusch, Kay & Strausz, Roland, 2004. "Mediation in Situations of Conflict and Limited Commitment," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 24, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Austen-Smith David, 1993. "Interested Experts and Policy Advice: Multiple Referrals under Open Rule," Games and Economic Behavior, Elsevier, vol. 5(1), pages 3-43, January.
- Wolinsky, Asher, 2002.
"Eliciting information from multiple experts,"
Games and Economic Behavior,
Elsevier, vol. 41(1), pages 141-160, October.
- Bagnoli, Mark & Lipman, Barton L, 1989. "Provision of Public Goods: Fully Implementing the Core through Private Contributions," Review of Economic Studies, Wiley Blackwell, vol. 56(4), pages 583-601, October.
- Palfrey, Thomas R. & Rosenthal, Howard, 1984. "Participation and the provision of discrete public goods: a strategic analysis," Journal of Public Economics, Elsevier, vol. 24(2), pages 171-193, July.
- Nahum D. Melumad & Toshiyuki Shibano, 1991. "Communication in Settings with No. Transfers," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 173-198, Summer.
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:268. 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: (Monica Birds)
If references are entirely missing, you can add them using this form.