Wednesday, October 16, 2013
Bray Theory Workshop
Competition in Persuasion
Emir Kamenica, Professor of Economics, The University of Chicago Booth School of Business
We study symmetric information games where a number of senders choose what information to generate. Does competition between the senders increase the amount of information revealed? We show that, in general, competition may increase or decrease information revelation. We identify the necessary and sufficient condition that guarantees that equilibrium outcomes are more informative than collusive outcomes. We also examine how introducing additional senders and decreasing the alignment of senders' preferences impacts equilibrium information revelation.