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Article
Private vs. Public Communication with Reputational Concerns
Forthcoming Journal of Economic Theory (2021)
  • Felipe Balmaceda, Assoc Prof.
Abstract
This paper studies the cost and benefits of private and public communication in
a game with a policy maker, a privately-informed expert, and the public. The policy maker and the expert have different opinions/views about the state of the world
and both the expert and policy maker care about the expert's reputation with the
public. The amount of information acquisition and transmission under private  vs. public communication, depends on how much the
policy maker and the expert differ in opinion. If both have either moderate
or very extreme opinions,  the costs and benefits are the same. In contrast, when the policy maker is
moderate and the expert has more extreme opinions, private communication is better, while if the policy maker is extreme and the expert has moderate views, public communication is better.
Keywords
  • Private and Public Communication,
  • Transparency,
  • Experts,
  • Non-common Priors,
  • Reputation,
  • Accountability.
Disciplines
Publication Date
Summer July 1, 2021
Citation Information
Felipe Balmaceda. "Private vs. Public Communication with Reputational Concerns" Forthcoming Journal of Economic Theory (2021)
Available at: http://works.bepress.com/felipe_balmaceda/21/