We study a model of strategic persuasion based on the theory of cheap talk, in which a better-informed agent manipulates two decision-makers' joint decision on alternative proposals. With the heterogeneity of two decision-makers' value of the outside option, only the decision-maker with the better outside option is critical in determining whether communication is truthful, overselling, or ineffective.
|Number of pages||4|
|Publication status||Published - 2014 May|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics