Efficient Communication in Organizations

Arbeitspapier

Organizations design their communication structures to improve decision-making while limiting wasteful influence activities. An efficient communication protocol grants complete information payoffs to all organization members, thereby overcoming asymmetric information problems at no cost. This paper characterizes efficient protocols assuming that: (i) some agents within the organization have the knowledge required for optimal decision-making; (ii) both the organization and consulted agents incur losses proportional to the exerted influence activities; and (iii) informed agents can discuss their strategies before being consulted. Under these assumptions, "public advocacy" is the unique efficient communication protocol. This result provides a novel rationale for public advocacy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 039.2022

Classification and Topics

• Classification: Wirtschaft ; Organizational Behavior; Transaction Costs; Property Rights ; Asymmetric and Private Information; Mechanism Design ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
• Subject: Information ; Communication ; Organizations ; Efficiency ; Costly Talk

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vaccari, Federico
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/267504
• Last update: 10.03.2025, 11:46 AM CET