Skewed Information Transmission

Francesc Dilme

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: This paper analyzes strategic information transition between skewed agents. More concretely, we study the Crawford and Sobel (1982) setting in the case where agents are not biased, but they differ on the relative importance they put on avoiding "upward" or "downward" mistakes. We show that, even though the agents could fully communicate when the state of the world was perfectly observed by the sender, the information transmission is significantly imprecise in any equilibrium when there is a small noise in the observation. Hence, contrary to what was previous thought, a low objective misalignment is not sufficient for precise equilibrium communication.

Keywords: Strategic Communication; Skewed Preferences (search for similar items in EconPapers)
JEL-codes: C72 D82 D83 (search for similar items in EconPapers)
Pages: 18
Date: 2018-07
New Economics Papers: this item is included in nep-gth and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2018_033

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