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Cheap-Talk Disclosure of Negative Information and Risk-Averse Buyers

허승|Dmitry Shapiro
경제연구소 (Hanyang Economic Research Institute)|2021.08|Seoul Journal of Economics|제34권 제3호|pp. 365-392|DOI 10.22904/sje.2021.34.3.002

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참고문헌

키워드

Cheap talkProduct differentiationRisk aversionNegative information
주제분류경제학

초록

In this paper, we study the incentives of low-quality sellers to separate them from high-quality sellers. We consider a framework with asymmetric quality information where the only way to communicate quality is via cheap-talk messages. In this framework, any separating strategy pursued by high-quality sellers can be imitated costlessly by low-quality sellers. We show that in the duopoly setting with risk-averse buyers, equilibria exist, where low-quality sellers voluntarily disclose negative information about their products. If the seller is a monopolist or buyers are risk-neutral, such equilibria do not exist.

Abstract

In this paper, we study the incentives of low-quality sellers to separate them from high-quality sellers. We consider a framework with asymmetric quality information where the only way to communicate quality is via cheap-talk messages. In this framework, any separating strategy pursued by high-quality sellers can be imitated costlessly by low-quality sellers. We show that in the duopoly setting with risk-averse buyers, equilibria exist, where low-quality sellers voluntarily disclose negative information about their products. If the seller is a monopolist or buyers are risk-neutral, such equilibria do not exist.

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관련 논문AI추천

Revealing Negative Information in Monopoly and Duopoly Settings: Experimental Analysis이재선, Dmitry A. Shapiro한국경제학회 · The Korean Economic Review2022 · 제38권 제1호Product Announcement and Reputation in a Cheap Talk Game남재현, 최재필한국계량경제학회 · 계량경제학보2010 · 제21권 제4호The Short-Term Effect of Low-Quality Sellers’ Voluntary Information Disclosure허승중소기업융합학회 · 융합정보논문지2021 · 제11권 제1호Cheap Talk by Two Senders in the Presence of Network Externalities김정유, 정재한한국경제학회 · The Korean Economic Review2019 · 제35권 제1호The Role of Information Search Cost on Seller's Disclosure of Negative Information허승중소기업융합학회 · 융합정보논문지2021 · 제11권 제4호A Note on Reputation in Noisy Cheap Talk이용주한국계량경제학회 · 계량경제학보2022 · 제33권 제3호

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