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Dynamic strategic information transmission

Author

Listed:
  • Golosov, Mikhail
  • Skreta, Vasiliki
  • Tsyvinski, Aleh
  • Wilson, Andrea

Abstract

This paper studies strategic information transmission in a finite horizon environment where, each period, a privately informed expert sends a message and a decision-maker takes an action. We show that communication in this dynamic environment drastically differs from a one-shot game. Our main result is that, under certain conditions, full information revelation is possible. We provide a constructive method to build such fully revealing equilibria; our result obtains with rich communication, in which non-contiguous types pool together, thereby allowing dynamic manipulation of beliefs. Essentially, conditioning future information release on past actions improves incentives for information revelation.

Suggested Citation

  • Golosov, Mikhail & Skreta, Vasiliki & Tsyvinski, Aleh & Wilson, Andrea, 2014. "Dynamic strategic information transmission," Journal of Economic Theory, Elsevier, vol. 151(C), pages 304-341.
    • Handle: RePEc:eee:jetheo:v:151:y:2014:i:c:p:304-341
    DOI: 10.1016/j.jet.2013.12.012
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Asymmetric information; Cheap talk; Dynamic strategic communication; Full information revelation;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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