Working paper

Little White Lies–The Value Of Inconsequential Chatter

Year:

2011

Published in:

Research Gate
Reputational cheap talk
career concerns
experts
strategic information transmission

This paper deals with the problem of providing adequate incentives to an expert who might be tempted to conceal his true opinion because of his desire to appear competent. We show that if a competent expert never makes mistakes, the incentive problem will disappear if the interaction lasts long enough. However, if a competent expert occasionally makes mistakes, the opposite obtains: There will always arise an incentive problem if the time horizon is sufficiently long. We furthermore demonstrate that the decision maker can address the incentive problem by letting the expert accumulate some private information about his ability, and that doing so is optimal if the competent expert never makes mistakes.

Related by author

57 publications found

2014
Analytical article

A Way Forward For Ukraine

Publisher: International Herald Tribune

Authors: Tymofiy Mylovanov, Scott Gehlbach, Roger Myerson

2022
Journal article

Government By Code? Blockchain Applications To Public Sector Governance

Publisher: Frontiers

Authors: Tymofiy Mylovanov, Pedro Bustamante, Meina Cai, Marcela Gomez, Colin Harris, Prashant Krishnamurthy, Wilson Law, Michael J Madison, Ilia Murtazashvili, Jennifer Brick Murtazashvili, Nataliia Shapoval, Annette Vee, Martin Weiss

2023
Working paper

How To Identify Foreign Business In Russia And What Are The Key Issues Of Creating And Keeping A Full List Of The Largest Foreign Companies In Russia

Publisher: SSRN

Authors: Tymofiy Mylovanov, Nataliia Shapoval, Andrii Onopriienko, Oleksii Hrybanovskyi

2008
Journal article

Veto‑Based Delegation

Publisher: Journal of Economic Theory

Authors: Tymofiy Mylovanov

2012
Journal article

Informed‑Principal Problems In Environments With Generalized Private Values

Publisher: Theoretical Economics

Authors: Tymofiy Mylovanov, Thomas Tröger

2014
Working paper

Mechanism Design With Ex‑Post Verification And No Transfers

Publisher: Bocconi University

Authors: Tymofiy Mylovanov, Andriy Zapechelnyuk

2008
Journal article

Optimal Auction With Resale—A Characterization Of The Conditions

Publisher: Economic Theory

Authors: Tymofiy Mylovanov, Thomas Tröger

2018
Book Chapter

Review Of The EU Policy For Ukraine

Publisher: Routledge

Authors: Tymofiy Mylovanov, Yuri M. Zhukov, Yuriy Gorodnichenko

2017
Journal article

Optimal Allocation With Ex Post Verification And Limited Penalties

Publisher: American Economic Review

Authors: Tymofiy Mylovanov, Andriy Zapechelnyuk

2005
Working paper

First‑Mover Disadvantage

Publisher: University of Mannheim

Authors: Tymofiy Mylovanov