TY - JOUR
T1 - Decentralized advice
AU - Feddersen, Timothy
AU - Gradwohl, Ronen
N1 - Publisher Copyright:
© 2020 Elsevier B.V.
PY - 2020/6
Y1 - 2020/6
N2 - We compare the amount of information credibly transmitted by cheap talk when information is centralized to one sender and when it is decentralized, with each of several senders holding a distinct but interdependent piece. Under centralization, full information transmission is typically impossible. Under decentralization, however, the number of receivers is decisive: decentralized communication with one receiver is completely uninformative, but decentralized communication with multiple receivers can be fully informative. We analyze the extent of such fully-informative communication, and apply our results to the issue of transparency in advisory committees.
AB - We compare the amount of information credibly transmitted by cheap talk when information is centralized to one sender and when it is decentralized, with each of several senders holding a distinct but interdependent piece. Under centralization, full information transmission is typically impossible. Under decentralization, however, the number of receivers is decisive: decentralized communication with one receiver is completely uninformative, but decentralized communication with multiple receivers can be fully informative. We analyze the extent of such fully-informative communication, and apply our results to the issue of transparency in advisory committees.
KW - Advice
KW - Cheap talk
KW - Transparency
UR - http://www.scopus.com/inward/record.url?scp=85082645551&partnerID=8YFLogxK
U2 - 10.1016/j.ejpoleco.2020.101871
DO - 10.1016/j.ejpoleco.2020.101871
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AN - SCOPUS:85082645551
SN - 0176-2680
VL - 63
JO - European Journal of Political Economy
JF - European Journal of Political Economy
M1 - 101871
ER -