Arbeitspapier

Optimal public information dissemination: Introducing multiplier effects into a generalized beauty contest

We develop a two-period generalized beauty contest to study the optimal level of publicity when disclosed information is subject to multiplier effects. We build upon the static case, where all agents receive a private signal about an unknown fundamental state and only a fraction of all agents receive an additional public signal. However, in our model, agents no longer act simultaneously; rather, agents informed by both signals act in the first period, while those uninformed act in the second period and learn about the public signal through a multiplier signal. We show that in the unique equilibrium of our sequential game, informed agents overreact more strongly to public signals. The optimal dissemination of public information is thus considerably lower than the static case suggests. Multiplier effects might decrease overall welfare if coordination incentives are sufficiently strong. Our results hold relevance for the optimal information policy design of public authorities.

Sprache
Englisch

Erschienen in
Series: cege Discussion Papers ; No. 260 [rev.]

Klassifikation
Wirtschaft
Asymmetric and Private Information; Mechanism Design
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Thema
generalized beauty contest
monetary policy
optimal communication
strategic complementarities

Ereignis
Geistige Schöpfung
(wer)
Hüning, Hendrik
Meub, Lukas
Ereignis
Veröffentlichung
(wer)
University of Göttingen, Center for European, Governance and Economic Development Research (cege)
(wo)
Göttingen
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hüning, Hendrik
  • Meub, Lukas
  • University of Göttingen, Center for European, Governance and Economic Development Research (cege)

Entstanden

  • 2016

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