A partially informed expert, A, strategically transmits information to a principal, P. The residual uncertainty faced by the expert effectively causes the bias between P and A to be random, with two consequences. First, by misreporting A is likely to induce a decision choice by P, after the...

This note shows that the most informative equilibrium in the Crawford and Sobel (1982) game of strategic information transmission is almost fully revealing as the two players' preferences get closer to each other. It thus strengthens the original observation that the quality of information does...

In a two-task team project with observable task outcomes, optimal incentives prioritize tasks differently depending on task externalities. When the tasks are independent, Principal follows a decreasing order by placing more essential task first. A task is more essential if its failure...