Economics at your fingertips  

Vertical conflict of interest and horizontal inequities

S. Sémirat

Working Papers from Grenoble Applied Economics Laboratory (GAEL)

Abstract: We analyze a cheap talk game, à la Crawford and Sobel, in a two dimensional framework, with uniform prior, quadratic preferences and binary signaling rule. Credible information is revealed from the Sender to the Receiver when the conflict of interest vanishes through the alternative issues. The literature has focused on symmetrical equilibria and their sustainability upon limited exogenous asymmetry in preferences. We exhibit a second type of equilibrium, with endogenous asymmetry with respect to the revealed information. This type of equilibrium occurs with or without conflict of interest between the players, and is introduced by the multi-dimensionality. However, the conflict of interest conditions the design of decisions and their intrinsic meaning. Finally, we derive the existence of an influential equilibria for any conflict of interest.

Keywords: CHEAP TALK; ASYMMETRIC INFORMATION; INEQUITY (search for similar items in EconPapers)
JEL-codes: D82 D84 D63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gth, nep-mic and nep-sog
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... 2016/gael2016-06.pdf (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:

Access Statistics for this paper

More papers in Working Papers from Grenoble Applied Economics Laboratory (GAEL) Contact information at EDIRC.
Bibliographic data for series maintained by Agnès Vertier ().

Page updated 2019-07-18
Handle: RePEc:gbl:wpaper:2016-06