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Information Transmission with Unknown Type of Receiver

Student: Murzin Danil

Supervisor: Sergey Stepanov

Faculty: Faculty of Economic Sciences

Educational Programme: Joint HSE-NES Undergraduate Program in Economics (Bachelor)

Year of Graduation: 2019

In this paper we study strategic information transmission between the expert and the decision maker. The expert has private information about the state of the world. The decision maker chooses an action that determines the welfare of both based on the message about the state of the world received from the expert. The key feature is that there are two types of the decision maker: he could either have the same preferences with the expert, or his preferences could be biased. We show that under certain conditions the expert doesn’t want to know the type of the decision maker. He would reveal the state of the world only if he thinks that the decision maker is more likely to have the same preferences. In a two-period game we show that sometimes the expert would not send the message that separates the decision makers even if it gives him higher utility in the first period.

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