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Benjamin Ogden, ECARES Print
Friday, 07 October 2016, 12:15 - 13:15

Benjamin Ogden, ECARES

Multidimensional Strategic Communication with Uncertain Salience

Abstract : In many areas where strategic communication models are applied (e.g., lobbying by interest groups), the relevant uncertainty is not over direction of bias, but priority of different issues. Within a model of multidimensional cheap talk, if the salience of different issues to the sender is unknown by the receiver, the expert may use the dimensions that are of less importance (to him) in order to achieve further manipulation of the policy-maker. The sender will do this unless he is sufficiently unbiased such that he has little conflict of interest from the receiver. This is inefficient from the policy-maker’s perspective, as she will be taking a loss (relative to babbling) from the dimensions on which she is receiving “false” information. I propose a novel linear tax on lobbying along different dimensions in order to align the incentives of the receiver and sender when it comes to information acquisition and cross-dimensional manipulation.

Location: R42.2.113
Contact: Nancy De Munck, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it