Strategic Communication with a Small Conflict of Interest
39 Pages Posted: 23 Feb 2019
Date Written: June 7, 2018
This paper provides a complete first-order characterization of equilibrium behavior in the general version of the Crawford and Sobel (1982)’s model when the conflict of interest is small. This exercise allows us to deepen our understanding of how a state-dependent bias and a non-uniform distribution influence the precision with which different states of the world are communicated. We illustrate our approach in some applications.
Keywords: Strategic Communication, Small Bias
JEL Classification: C72, D82, D83
Suggested Citation: Suggested Citation