Collective Information Acquisition

Kfir Eliaz and Ran Eilat

No 15324, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We consider the problem faced by a group of players who need to collectively decide what public signal to acquire, and how to share its cost, before voting on whether to take some action, when each player is privately informed about his state-dependent payoffs from the action. We characterize the welfare maximizing mechanism for information acquisition taking into account the subsequent voting game. We identify novel distortions that arise from the information asymmetry and from the fact that after observing the signal realization, the players vote independently of their actions in the mechanism.

Keywords: Collective decision-making; Mechanism-design; Information-design; Rational inattention; Public good provision (search for similar items in EconPapers)
Date: 2020-09
New Economics Papers: this item is included in nep-cdm, nep-des, nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP15324 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:15324

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP15324

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().