Articles
False Advice as Signal of the Unbiased Advisor
-
AuthorKyung-Young Park (Sungkyunkwan University)
-
Year2016
-
VolumeVol.64
-
NumberNo.1
-
When the decision maker is uncertain about the advisor’s type, an unbiased
advisor has the incentive to act differently from a biased advisor in order to
signal his type. If the biased advisor tells the truth, then the unbiased advisor
gives false advice to the decision maker. This is because the unbiased advisor
uses only one type of message to signal his type. Specifically, I show that
there exists an equilibrium in which the unbiased advisor always lies but the
biased always tells the truth, if the unbiased advisor cares about the future but
the biased advisor the present and the bias of the biased advisor is small
enough. This result is new compared to Kim et al. (2013). Also, I find
several other equilibria. -
File
