Information manipulation and competition

Andreas Grunewald and Matthias Kräkel

Games and Economic Behavior, 2022, vol. 131, issue C, 245-263

Abstract: In the last decade, social media and the Internet have amplified the possibility to circulate false information among an audience, which has become a serious threat to the credibility of politicians, organizations, and other decision makers. This paper proposes a framework for investigating the incentives to strategically manipulate the audience's belief under different institutions and in various competitive environments. We show that more rigorous institutions against information manipulation can lead to higher manipulation intensities in equilibrium. Complementary, we study what kind of competitive environment is particularly susceptible to the manipulation of information.

Keywords: Backfiring; Competition; Information manipulation; Signal jamming (search for similar items in EconPapers)
JEL-codes: D02 D72 D80 H00 L10 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:131:y:2022:i:c:p:245-263

DOI: 10.1016/j.geb.2021.11.007

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