Information Gatekeepers: Theory and Experimental Evidence
38 Pages Posted: 7 Oct 2009
Date Written: September 2009
Abstract
We consider a model where two adversaries can spend resources in acquiring public information about the unknown state of the world in order to influence the choice of a decision maker. We characterize the sampling strategies of the adversaries in the equilibrium of the game. We show that, as the cost of information acquisition for one adversary increases, that person collects less evidence whereas the other adversary collects more evidence. We then test the results in a controlled laboratory setting. The behavior of subjects is close to the theoretical predictions. Mistakes are relatively infrequent (15%). They occur in both directions, with more over-sampling (39%) than under-sampling (8%). The main difference with the theory is the smooth decline in sampling around the theoretical equilibrium. Comparative statics are also consistent with the theory, with adversaries sampling more when their own cost is low and when the other adversary's cost is high. Finally, there is little evidence of learning over the 40 matches of the experiment.
Keywords: adversarial system, experiment, information acquisition, search
JEL Classification: C91, D83
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By Emir Kamenica and Matthew Gentzkow
-
By Johannes Horner and Andrzej Skrzypacz
-
By Matthew Gentzkow and Emir Kamenica
-
By Johannes Horner and Andrzej Skrzypacz
-
By Johannes Horner and Andrzej Skrzypacz
-
Strategic Information Exchange
By Dinah Rosenberg, Eilon Solan, ...
-
Optimal Disclosure of Supervisory Information in the Banking Sector
By Wolfgang Gick and Thilo Pausch
-
Informational Lobbying and Agenda Distortion
By Christopher Cotton and Arnaud Dellis