← Search

Journal of Political Economy Vol. 113 No. 6 2005

Modes of Communication

Mathias Dewatripont1,2,3; Jean Tirole4

1 Université Libre de Bruxelles · 2 Economic Policy Institute · 3 Massachusetts Institute of Technology · 4 Institut d'Économie Industrielle

Abstract

The paper develops a theory of costly communication in which the sender’s and receiver’s motivations and abilities endogenously determine the communication mode and the transfer of knowledge. Communication is modeled as a problem of moral hazard in teams, in which the sender and receiver select persuasion and message elaboration efforts. The model is shown to provide a rich set of insights concerning (i) the impact of incentive alignment on communication strategies, (ii) the relative influence and the complementarity/substitutability between issue‐relevant communication and cues (information that relates to the credibility of the sender rather than to the issue at stake), and (iii) the path dependency of communication.

DOI
10.1086/497999
Volume
113
Issue
6
Pages
1217-1238
Language
en
Sources
bibtex:phds-export.bib openalex crossref

Cite