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Verifiable communication on networks

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  • Gieczewski, Germán

Abstract

This paper models the diffusion of verifiable information on a network populated by biased agents. Some agents, who are exogenously informed, choose whether to inform their neighbors. Informing a neighbor affects her behavior, but also enables her to inform others. Agents cannot lie; they can, however, feign ignorance. The model yields three main results. First, unless a large set of agents is initially informed, learning is incomplete. Second, full learning is more likely for moderate than for extreme states of the world. Third, when agents are forward-looking, concerns about learning cascades lead to an endogenous division of the population into like-minded groups that do not communicate with each other.

Suggested Citation

  • Gieczewski, Germán, 2022. "Verifiable communication on networks," Journal of Economic Theory, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:jetheo:v:204:y:2022:i:c:s0022053122000849
    DOI: 10.1016/j.jet.2022.105494
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    More about this item

    Keywords

    Verifiable information; Networks; Social learning; Strategic communication; Learning cascades;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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