Efficient Communication in Organizations

Federico Vaccari

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arXiv · 2211.13605

Efficient Communication in Organizations

Federico Vaccari

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Abstract

This paper studies the organization of communication between biased senders and a receiver. Senders can misreport their private information at a cost. Efficiency is achieved by clearing information asymmetries without incurring costs. Results show that only one communication protocol is efficient, robust to collusion, and free from unnecessary complexities. This protocol has a simple, adversarial, and public structure. It always induces efficient equilibria, for which a closed-form characterization is provided. The findings are relevant for the design of organizations that seek to improve decision-making while limiting wasteful influence activities.

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Federico Vaccari. 2022-11-24. Efficient Communication in Organizations. https://arxiv.org/abs/2211.13605

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