IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/1544.html
   My bibliography  Save this paper

Strategic gradual learning and information transmission

Author

Abstract

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
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/1544.pdf
    File Function: Whole Paper
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ivanov Maxim, 2015. "Dynamic Information Revelation in Cheap Talk," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 15(2), pages 251-275, July.
    2. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
    3. Kfir Eliaz & Alexander Frug, 2016. "Bilateral trade with strategic gradual learning," Economics Working Papers 1543, Department of Economics and Business, Universitat Pompeu Fabra, revised Sep 2017.
    4. Kfir Eliaz & Alexander Frug, 2016. "When to Learn what in Bilateral Trade," Working Papers 936, Barcelona Graduate School of Economics.
    5. Paul E. Fischer & Phillip C. Stocken, 2001. "Imperfect Information and Credible Communication," Journal of Accounting Research, Wiley Blackwell, vol. 39(1), pages 119-134, June.
    6. Blume, Andreas & Board, Oliver J. & Kawamura, Kohei, 2007. "Noisy talk," Theoretical Economics, Econometric Society, vol. 2(4), December.
    7. Austen-Smith, David, 1994. "Strategic Transmission of Costly Information," Econometrica, Econometric Society, vol. 62(4), pages 955-963, July.
    8. Maxim Ivanov, 2016. "Dynamic learning and strategic communication," International Journal of Game Theory, Springer;Game Theory Society, vol. 45(3), pages 627-653, August.
    9. Eliaz, Kfir & Frug, Alexander, 2016. "When to Learn What in Bilateral Trade," CEPR Discussion Papers 11350, C.E.P.R. Discussion Papers.
    10. Rossella Argenziano & Sergei Severinov & Francesco Squintani, 2016. "Strategic Information Acquisition and Transmission," American Economic Journal: Microeconomics, American Economic Association, vol. 8(3), pages 119-155, August.
    11. Goltsman, Maria & Hörner, Johannes & Pavlov, Gregory & Squintani, Francesco, 2009. "Mediation, arbitration and negotiation," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1397-1420, July.
    12. Pei, Harry Di, 2015. "Communication with endogenous information acquisition," Journal of Economic Theory, Elsevier, vol. 160(C), pages 132-149.
    13. Frug, Alexander, 2016. "Dynamic cheap talk with static informational control," Economics Letters, Elsevier, vol. 143(C), pages 118-120.
    14. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
    15. 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.
    16. Frug, Alexander, 2016. "A note on optimal cheap talk equilibria in a discrete state space," Games and Economic Behavior, Elsevier, vol. 99(C), pages 180-185.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:gamebe:v:107:y:2018:i:c:p:380-395 is not listed on IDEAS

    More about this item

    Keywords

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:1544. 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: (). General contact details of provider: http://www.econ.upf.edu/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.