Vagueness and information-sharing

Marta Troya-Martinez
Authors registered in the RePEc Author Service: Marta Troya Martinez

Games and Economic Behavior, 2016, vol. 100, issue C, 301-320

Abstract: This paper considers a model in which two heterogeneous principals need to concur to approve a project proposed by an agent. The agent provides them with information about the project's desirability and the principals can agree to share it. We seek to understand the impact of such an agreement when the agent can secretly choose the vagueness of the information reported to the principals. We show that when the project is controversial and the principals retain their veto power, information-sharing makes the agent use very vague information. In these circumstances, both principals are willing to extend cooperation to decision-making in order to extract more precise information from the agent.

Keywords: Common agency; Public communication; Signal-jamming (search for similar items in EconPapers)
JEL-codes: D83 F53 L4 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:100:y:2016:i:c:p:301-320

DOI: 10.1016/j.geb.2016.09.003

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