Communication with endogenous information acquisition

Harry Pei

Journal of Economic Theory, 2015, vol. 160, issue C, 132-149

Abstract: I develop a theory of communication in which a sender gathers costly information before giving advice to a receiver. In a general setting, I show that the sender always communicates all her information to the receiver in every equilibrium. In the uniform-quadratic model in which the sender can choose any finite partition as her information structure, an upwardly biased sender can convey more precise information when recommending a larger action.

Keywords: Cheap talk; Information acquisition; Communication (search for similar items in EconPapers)
JEL-codes: D82 D83 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:160:y:2015:i:c:p:132-149

DOI: 10.1016/j.jet.2015.08.011

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