Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7349633 | Economics Letters | 2018 | 4 Pages |
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
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Economics, Econometrics and Finance
Economics and Econometrics
Authors
Tsz-Ning Wong, Lily Ling Yang,