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Information transmission in persuasion models with imperfect verification

Version 2 2024-10-20, 00:15
Version 1 2024-10-11, 03:10
journal contribution
posted on 2024-10-20, 00:15 authored by Francisco SilvaFrancisco Silva
I study a persuasion game between a privately informed agent and a decision maker (DM) who can imperfectly verify the statements made by the agent by observing a signal that is correlated with the agent's information. I find that whether or not the DM benefits from communicating with the agent depends on whether the DM's signal and the agent's private information satisfy a weak affiliation condition. I then discuss the significance of this result to the debate over the use of self‐appraisals in business. I argue that, in general, self‐appraisals are only useful when the workers' abilities are multidimensional.

History

Journal

Theoretical Economics

Volume

19

Pagination

1001-1026

Location

Los Angeles, Calif.

Open access

  • Yes

ISSN

1933-6837

eISSN

1555-7561

Language

eng

Publication classification

C1 Refereed article in a scholarly journal

Issue

3

Publisher

Econometric Society