Peddling Influence through Intermediaries

Wei Li

American Economic Review, 2010, vol. 100, issue 3, 1136-62

Abstract: A sender may communicate with a decision maker through intermediaries. In this model, an objective sender and intermediary pass on information truthfully, while biased ones favor a particular agenda but also have reputational concerns. I show that the biased sender and the biased intermediary's reporting truthfulness are strategic complements. The biased sender is less likely to use an intermediary than an objective sender if his reputational concerns are low, but more likely to do so if his reputational concerns are moderate. Moreover, the biased sender may be more likely to use an intermediary perceived to be more biased. (JEL D82, D83)

JEL-codes: D82 D83 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/aer.100.3.1136
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Citations: View citations in EconPapers (9)

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