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Screening and Signaling in Communication

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  • Ascensión Andina‐Díaz

Abstract

In this paper, we analyze a model of repeated strategic communication between a sender and a receiver. The sender has private information on a policy‐relevant variable but does not know the receiver's motives. Together with the desire of the sender to please the receiver and the desire of the receiver to be pleased, the two‐sided incomplete information creates an interesting communication problem in which players can choose to use information strategically. We analyze various modes of communication, which allow for information transmission, and we compare them in terms of both the quality of the policy implemented and the welfare of the players.

Suggested Citation

  • Ascensión Andina‐Díaz, 2012. "Screening and Signaling in Communication," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 480-499, June.
    • Handle: RePEc:bla:scandj:v:114:y:2012:i:2:p:480-499
    DOI: j.1467-9442.2011.01687.x
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    References listed on IDEAS

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    1. Navin Kartik, 2009. "Strategic Communication with Lying Costs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(4), pages 1359-1395.
    2. Watson, Joel, 1996. "Information Transmission When the Informed Party Is Confused," Games and Economic Behavior, Elsevier, vol. 12(1), pages 143-161, January.
    3. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
    4. Marco Ottaviani & Francesco Squintani, 2006. "Naive audience and communication bias," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(1), pages 129-150, December.
    5. Michael Rothschild & Joseph Stiglitz, 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 629-649.
    6. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
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