SEMINAR CANCELLED
CIREQ-Concordia Seminar
Virtual Seminar Series in Information Economics and Experiments
joint with the Department of Economics, Concordia University
Organizers : Ming Li (Concordia U.) and Huan Xie (Concordia U.)
* Please contact one of the organizers to obtain the Zoom link.
ABSTRACT : A principal seeks to maximize an agent’s material welfare by providing information. However, the agent’s preference is shaped not only by his material payoff but also by a psychological (belief-dependent) cost, which makes him averse to receiving excessively negative information. We provide conditions under which the optimal information structure is positively or negatively skewed, reflecting the trade-off between informativeness and psychological burden.
