Persuasion in Networks
Francesco Squintani
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Francesco Squintani: University of Warwick
CRETA Online Discussion Paper Series from Centre for Research in Economic Theory and its Applications CRETA
Abstract:
This paper explores the intersection of two major research streams in economic theory : information transmission in networks and strategic communication. The model embeds Milgrom’s (1981) strategic disclosure game into the communication network framework of Jackson and Wolinsky (1996). I find that the uniquely optimal network is a line in which players are ordered by their bliss points. This ordered line is also pairwise-stable. This finding contrasts with previous results in network studies, which identify stars as the optimal and pairwise-stable networks when communication is non-strategic and subject to technological constraints. While stars are the most centralized minimally connected networks, the line is the most decentralized.
Date: 2024
New Economics Papers: this item is included in nep-gth, nep-mic and nep-net
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:wcreta:88
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