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Timing Information Flows

Author

Listed:
  • Gabriele Gratton

    (School of Economics, UNSW Business School, UNSW)

  • Richard Holden

    (School of Economics, UNSW Business School, UNSW)

  • Anton Kolotilin

    (School of Economics, UNSW Business School, UNSW)

Abstract

At an exogenous deadline, Receiver must take an action, the payoff of which depends on Sender’s private binary type. Sender privately observes whether and when an opportunity to start a public flow of information about her type arrives. She then chooses when to seize this opportunity. Starting the information flow earlier exposes to greater scrutiny but signals credibility. We characterize the set of equilibria and show that Sender always delays the information flow and completely withholds it with strictly positive probability. Focusing on the stable equilibrium, we derive comparative statics, and discuss implications for organizations, politics, and financial markets.

Suggested Citation

  • Gabriele Gratton & Richard Holden & Anton Kolotilin, 2015. "Timing Information Flows," Discussion Papers 2015-16, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2015-16
    as

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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2015-16.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    information disclosure; strategic timing; Bayesian learning; credibility vs. scrutiny;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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