Jung, Hanjoon Michael (2007): Strategic Information Transmission through the Media.
Preview |
PDF
MPRA_paper_5556.pdf Download (231kB) | Preview |
Abstract
We model media manipulation in which a sender or senders manipulate information through the media to influence receivers. We show that if there is only one sender who has a conditional preference for maintaining its credibility in reporting accurate information and if the receivers face a coordination situation without information about their opponents' types, the sender could influence the receivers to make decisions according to the sender's primary preference by manipulating the information through the media, which makes the report common knowledge. This is true even when the sender and the receivers have contradictory primary preferences. This result extends to the cases in which the sender has imperfect information or in which the sender's primary preference is to maintain its credibility. In the case of multiple senders, however, when there is enough competition among the senders or when simultaneous reporting takes place, the receivers could play their favored outcome against senders' preferences, which sheds light on a solution to the media manipulation problem.
Item Type: | MPRA Paper |
---|---|
Institution: | Lahore University of Management Sciences |
Original Title: | Strategic Information Transmission through the Media |
Language: | English |
Keywords: | Arms Race; Common Knowledge; Information Transmission; Media Bias; Media Competition; Media Manipulation |
Subjects: | D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games |
Item ID: | 5556 |
Depositing User: | Hanjoon Michael Jung |
Date Deposited: | 02 Nov 2007 |
Last Modified: | 26 Sep 2019 14:48 |
References: | 1.Aumann, Robert J. and Hart, Sergiu (2003): "Long Cheap Talk," Econometrica, 71, 1619--1660. 2.Austen-Smith, David (1990): "Information Transmission in Debate," American Journal of Political Science, 34, 124--152. 3.Baliga, Sandeep and Morris, Stephen (2002): "Co-ordination, Spillovers, and Cheap Talk," Journal of Economic Theory, 105, 450--468. 4.Baliga, Sandeep and Sjöström, Tomas (2004): "Arms Races and Negotiations," Review of Economic Studies, 71, 351--369. 5.Banerjee, Abhijit V. (1992): "A Simple Model of Herd Behavior," Quarterly Journal of Economics, 107, 797--817. 6.Banks, Jeffrey S. and Sobel, Joel (1987): "Equilibrium Selection in Signaling Games," Econometrica, 55, 647--661. 7.Baron, David P. (2005): "Competing for the Public through the News Media," Journal of Economics and Management Strategy, 14, 339--376. 8.Baron, David P. (2006): "Persistent Media Bias," Journal of Public Economics, 90, 1--36. 9.Battaglini, Marco (2002): "Multiple Referrals and Multidimensional Cheap Talk," Econometrica, 70, 1379--1401. 10.Bernhardt, Dan; Krasa, Stefan; and Polborn, Mattias (2006): "Political Polarization and the Electoral Effects of Media Bias," CESifo Working Paper Series No. 1798. 11.Besley, Timothy and Prat, Andrea (2004): "Handcuffs for the Grabbing Hand?--Media Capture and Government Accountability," CEPR Discussion Paper No. 3132. 12.Bhattacharya, Sudipto (1979): "Imperfect Information, Dividend Policy, and `The Bird in the Hand' Fallacy," Bell Journal of Economics, 10, 259--270. 13.Cho, In-Koo and Kreps, David M. (1987): "Signaling Games and Stable Equilibria," Quarterly Journal of Economics, 102, 179--222. 14.Crawford, Vincent P. and Sobel, Joel (1982): "Strategic Information Transmission," Econometrica, 50, 1431--1451. 15.DeFleur, Melvin L. and Ball-Rokeach, Sandra (1989): "Theories of Mass Communication," Chapter 6--7, Longman Press, Fifth Edition. 16.Dyck, Alexander and Zingales, Luigi (2003): "The Media and Asset Prices," mimeo. 17.Farrell, Joseph (1993): "Meaning and Credibility in Cheap-talk Games," Games and Economic Behavior, 5, 514--531. 18.Farrell, Joseph and Gibbons, Robert (1989a): "Cheap Talk with Two Audiences," American Economic Review, 79, 1214--1223. 19.Farrell, Joseph and Gibbons, Robert (1989b): "Cheap Talk Can Matter in Bargaining," Journal of Economic Theory, 48, 221--237. 20.Farrell, Joseph and Rabin, Matthew (1996): "Cheap Talk," Journal of Economic Perspectives, 10, 103--118. 21.Fudenberg, Drew and Tirole, Jean (1991): "Perfect Bayesian Equilibrium and Sequential Equilibrium," Journal of Economic Theory, 53, 236--260. 22.Gamson, William A.; Croteau, David; Hoynes, William; and Sasson, Theodore (1992): "Media Images and the Social Construction of Reality," Annual Review of Sociology, 18, 373--393. 23.Gentzkow, Matthew and Shapiro, Jesse M. (2006): "Media Bias and Reputation," Journal of Political Economy, 114, 280--316. 24.Goltsman, Maria; Hörner, Johannes; Pavlov, Gregory; and Squintani, Francesco (2007): "Mediated Cheap Talk," http://www.cireq.umontreal.ca/activites/papiers/06-07goltsman.pdf. 25.Heyward, Andrew (2004): "CBS Statement on Bush Memos," CBSNews.com, September 20. 26.Kartik, Navin; Ottaviani, Marco; and Squintani, Francesco (2006): "Credulity, Lies, and Costly Talk," Journal of Economic Theory, Forthcoming. 27.Kirkpatrick, David D. and Fabrikant, Geraldine (2003): "Advertisers and Wall Street Welcome Moves to Change," New York Times, June 6. 28.Krishna, Vijay and Morgan, John (2001): "A Model of Expertise," Quarterly Journal of Economics, 116, 747--775. 29.Manelli, Alejandro M. (1997): "The Never-a-Weak-Best-Response Test in Infinite Signaling Games," Journal of Economic Theory, 74, 152--173. 30.Milgrom, Paul R. (1981): "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, 12, 380--391. 31.Milgrom, Paul R. and Roberts, John (1986): "Price and Advertising Signals of Product Quality," Journal of Political Economy, 94, 796--821. 32.Morris, Stephen and Shin, Hyun Song (2002): "Social Value of Public Information," American Economic Review, 92, 1521--1534. 33.Mullainathan, Sendhil and Shleifer, Andrei (2005): "The Market for News," American Economic Review, 95, 1031--1053. 34.Rather, Dan (2004): "Dan Rather Statement on Memos," CBSNews.com, September 20. 35.Scharfstein, David S. and Stein, Jeremy C. (1990): "Herd Behavior and Investment," American Economic Review, 80, 465--479. 36.Schelling, Thomas C. (1960): "The Strategy of Conflict," Chapter 9, Harvard University Press. 37.Seidmann, Daniel J. and Winter, Eyal (1997): "Strategic Information Transmission with Verifiable Messages," Econometrica, 65, 163--169. 38.Shirer, William L. (1990): "The Rise and Fall of the Third Reich," Chapter 16, MJF Books Press. 39.Sobel, Joel (1985): "A Theory of Credibility," Review of Economic Studies, 52, 557--573. 40.Spence, Michael (1973): "Job Market Signaling," Quarterly Journal of Economics, 87, 355--379. 41.Stein, Jeremy C. (1989): "Cheap Talk and the Fed: A Theory of Imprecise Policy Announcements," American Economic Review, 79, 32--42. 42.Strömberg, David (2004): "Mass Media Competition, Political Competition, and Public Policy," Review of Economic Studies, 71, 265--284. 43.Van Damme, Eric (1989): "Stable Equilibria and Forward Induction," Journal of Economic Theory, 48, 476--496. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/5556 |
Available Versions of this Item
- Strategic Information Transmission through the Media. (deposited 02 Nov 2007) [Currently Displayed]