Persuasion, Binary Choice, and the Costs of Dishonesty

Auteur(s)

Roland Hodler

Accéder

Beschreibung

We study the strategic interaction between a decision maker who needs to take a binary decision but is uncertain about relevant facts and an informed expert who can send a message to the decision maker but has a preference over the decision. We show that the probability that the expert can persuade the decision maker to take the expert's preferred decision is a hump-shaped function of his costs of sending dishonest messages.

Sujets

Sciences economiques > Commerce international

Institution partenaire

Université de St-Gall - Schools of Management

Langue

English

Datum

2014