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  • Yuk-fai Fong

    (Kellogg School of Management, Northwestern University)

  • Peter Eso

    (Kellogg School of Management, Northwestern University)

We study a dynamic cheap talk model with multiple senders where the receiver can choose when to make her decision and communication can take place over time. No player has the ability to commit to any action in the future, in particular, the receiver cannot commit to delay the decision. In contrast to the results in static versions of the model, we show that when the senders have common knowledge about the state of the world, there exists an equilibrium with instantenous, full revelation irrespective of the size and direction of the senders’ biases. We show that the equilibrium is robust to the introduction of noise in the senders’ signals about the state. The conditions under which the equilibrium outcome with noisy observation converges to immediate full disclosure as the noise disappears involve the size of the senders’ biases and their patience.

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Paper provided by Society for Economic Dynamics in its series 2008 Meeting Papers with number 303.

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Date of creation: 2008
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Handle: RePEc:red:sed008:303
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/society.htm
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  1. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
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  10. repec:ebl:ecbull:v:4:y:2006:i:14:p:1-8 is not listed on IDEAS
  11. David Austen-Smith & Jeffrey S. Banks, 1998. "Cheap Talk and Burned Money," Discussion Papers 1245, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  12. Krishna, Vijay & Morgan, John, 2004. "The art of conversation: eliciting information from experts through multi-stage communication," Journal of Economic Theory, Elsevier, vol. 117(2), pages 147-179, August.
  13. Battaglini Marco, 2004. "Policy Advice with Imperfectly Informed Experts," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 4(1), pages 1-34, April.
  14. Georgy Artemov, 2006. "Imminent Nash Implementation as a Solution to King Solomon's Dilemma," Economics Bulletin, AccessEcon, vol. 4(14), pages 1-8.
  15. Faruk Gul, 1987. "Noncooperative Collusion in Durable Goods Oligopoly," RAND Journal of Economics, The RAND Corporation, vol. 18(2), pages 248-254, Summer.
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