Article ID Journal Published Year Pages File Type
7349633 Economics Letters 2018 4 Pages PDF
Abstract
We study a persuasion game between a decision maker and an expert. Before communication, the expert searches for an evidence about the state of nature. Higher effort leads to a higher probability of discovery. We show that, contrary to everyday experiences, monitoring of effort is always suboptimal if the expert's bias is large, yet sometimes optimal if the expert's bias is small.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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