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Strategic gradual learning and information transmission



Prior to advising a decision maker, the expert needs to gather information about the state of the world. This often takes time and therefore, even if the expert's learning process is unobservable, the timing of the advice is informative in itself. If learning is strategic in that the expert can choose which inspections to perform, the timing of advice may reveal not only the amount but also the type of information available to the expert. This paper studies the expert's covert and strategic process of information acquisition and its effect on the quality of advice. The main result of this paper suggests that, even in the absence of an "objective" reason to expedite information transmission, putting the biased expert under an artificial (or "strategic") pressure, can increase the amount of transmitted information and be beneficial to both players.

Suggested Citation

  • Alexander Frug, 2016. "Strategic gradual learning and information transmission," Economics Working Papers 1544, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:1544

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    References listed on IDEAS

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    4. Eliaz, Kfir & Frug, Alexander, 2018. "Bilateral trade with strategic gradual learning," Games and Economic Behavior, Elsevier, vol. 107(C), pages 380-395.
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    Cited by:

    1. repec:eee:gamebe:v:107:y:2018:i:c:p:380-395 is not listed on IDEAS
    2. Kfir Eliaz & Alexander Frug, 2016. "When to Learn what in Bilateral Trade," Working Papers 936, Barcelona Graduate School of Economics.
    3. Eliaz, Kfir & Frug, Alexander, 2018. "Bilateral trade with strategic gradual learning," Games and Economic Behavior, Elsevier, vol. 107(C), pages 380-395.
    4. Hidir, Sinem, 2017. "Information Acquisition and Credibility in Cheap Talk," CRETA Online Discussion Paper Series 36, Centre for Research in Economic Theory and its Applications CRETA.

    More about this item


    Gradual Learning; Strategic Pressure; Scheduling of Experiments; Dynamic Information Transmission; Cheap Talk.;

    JEL classification:

    • 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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