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Presidential Address Costly Communication and Incentives

Author

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  • Mathias Dewatripont
Abstract
This paper discusses the introduction of incentive considerations in a model of costly communication. It starts from a simplified version of a team-theoretic model due to Dessein and Santos (2003), which relates the design of an organization to its adaptiveness to environmental uncertainty. Incentives are introduced in this setting, following an approach developed by Dewatripont and Tirole (2005). Doing so enriches the analysis by allowing for the coexistence of various forms of communication, in particular cheap talk versus costly communication. (JEL: D8) (c) 2006 by the European Economic Association.

Suggested Citation

  • Mathias Dewatripont, 2006. "Presidential Address Costly Communication and Incentives," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 253-268, 04-05.
    • Handle: RePEc:tpr:jeurec:v:4:y:2006:i:2-3:p:253-268
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    Cited by:

    1. Bilancini, Ennio & Boncinelli, Leonardo, 2018. "Signaling to analogical reasoners who can acquire costly information," Games and Economic Behavior, Elsevier, vol. 110(C), pages 50-57.
    2. Jianjing Lin, 2023. "To follow the market or the parent system: Evidence from health IT adoption by hospital chains," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 891-910, October.
    3. Rivera, Thomas J., 2018. "Incentives and the structure of communication," Journal of Economic Theory, Elsevier, vol. 175(C), pages 201-247.
    4. Spulber, Daniel F., 2012. "Tacit knowledge with innovative entrepreneurship," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 641-653.
    5. Ennio Bilancini & Leonardo Boncinelli, 2014. "Persuasion with Reference Cues and Elaboration Costs," Center for Economic Research (RECent) 102, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    6. Bilancini, Ennio & Boncinelli, Leonardo, 2018. "Rational attitude change by reference cues when information elaboration requires effort," Journal of Economic Psychology, Elsevier, vol. 65(C), pages 90-107.
    7. Stefano Dughera, 2020. "Skills, preferences and rights: evolutionary complementarities in labor organization," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 843-866, July.

    More about this item

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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