Peddling Influence through Intermediaries

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Abstract:

A sender may communicate with a decision maker through intermediaries. In this model, an objective sender and intermediary pass on information truthfully, while biased ones favor a particular agenda but also have reputational concerns. I show that the biased sender and the biased intermediary's reporting truthfulness are strategic complements. The biased sender is less likely to use an intermediary than an objective sender if his reputational concerns are low, but more likely to do so if his reputational concerns are moderate. Moreover, the biased sender may be more likely to use an intermediary perceived to be more biased.

Document Type: Research Article

DOI: http://dx.doi.org/10.1257/aer.100.3.1136

Publication date: June 1, 2010

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