
arXiv: 2211.13605
handle: 10446/316866 , 10419/267504
This paper studies the organization of communication between biased senders and a receiver. Senders can misreport their private information at a cost. Efficiency is achieved by clearing information asymmetries without incurring costs. Results show that only one communication protocol is efficient, robust to collusion, and free from unnecessary complexities. This protocol has a simple, adversarial, and public structure. It always induces efficient equilibria, for which a closed-form characterization is provided. The findings are relevant for the design of organizations that seek to improve decision-making while limiting wasteful influence activities.
Organizations, ddc:330, Communication, Efficiency, FOS: Economics and business, D82, D83, Information, Economics - Theoretical Economics, D23, Theoretical Economics (econ.TH), Costly Talk
Organizations, ddc:330, Communication, Efficiency, FOS: Economics and business, D82, D83, Information, Economics - Theoretical Economics, D23, Theoretical Economics (econ.TH), Costly Talk
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