Template-type: ReDif-Paper 1.0
Author-Name: Herings, P. Jean-Jacques
Author-workplace-name: RS: GSBE Theme Data-Driven Decision-Making, RS: GSBE Theme Conflict & Cooperation, Microeconomics & Public Economics
Author-Name: Karos, Dominik
Author-Name: Kerman, Toygar
Author-workplace-name: General Economics 0 (Onderwijs), RS: GSBE other - not theme-related research
Title: Belief Inducibility and Informativeness
Abstract: We consider a group of receivers who share a common prior on a finite state space and who observe private correlated signals that are contingent on the true state of the world. We show that, while necessary, Bayes plausibility is not sufficient for a distribution over posterior belief vectors to be inducible, and we provide a characterization of inducible distributions. We classify communication strategies as minimal, direct, and language independent, and show that any inducible distribution can be induced by a language independent communication strategy (LICS). We investigate 12 the role of the different classes of communication strategies for the amount of higher order information that is revealed to receivers. We show that the least informative communication strategy which induces a fixed distribution over posterior belief vec tors lies in the relative interior of the set of all language independent communication strategies which induce that distribution.
Series: GSBE Research Memoranda
Creation-Date: 20201013
Number: 027
File-URL: https://cris.maastrichtuniversity.nl/ws/files/53196775/RM20027.pdf
File-Format: application/pdf
File-Size: 651227
Handle: Repec:unm:umagsb:2020027
DOI: 10.26481/umagsb.2020027