Efficient Communication in Organizations

Federico Vaccari

Papers from arXiv.org

Abstract: This paper studies the organization of communication between biased senders and a receiver. Senders can misreport their private information at a cost. Efficiency is achieved by clearing information asymmetries without incurring costs. Results show that only one communication protocol is efficient, robust to collusion, and free from unnecessary complexities. This protocol has a simple, adversarial, and public structure. It always induces efficient equilibria, for which a closed-form characterization is provided. The findings are relevant for the design of organizations that seek to improve decision-making while limiting wasteful influence activities.

Date: 2022-11, Revised 2025-02
New Economics Papers: this item is included in nep-gth
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http://arxiv.org/pdf/2211.13605 Latest version (application/pdf)

Related works:
Working Paper: Efficient Communication in Organizations (2022)
Working Paper: Efficient Communication in Organizations (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2211.13605

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