Martin Szydlowski, PhD, University of Minnesota
This event is part of the Economics Seminar Series series.
Location:
Gerri C. LeBow Hall722
3220 Market Street
Philadelphia, PA 19104
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Fomenting Conflict∗ Martin Szydlowski† August 9, 2022
Abstract
I study information disclosure as a means to create conflict. A sender aims to keep two parties engaged in a war of attrition and reveals information about their relative strength. In the unique Markov Perfect Equilibrium, the sender employs “shifting rhetoric”: she alternates pipetting good and bad news about each party, so that neither appears too strong. Information designed to induce one party to continue fighting weakens the other party’s incentives. This spillover effect may lead to early resolution and leave the sender worse off. With commitment, the sender provides delayed noisy disclosures. A partisan sender, who favors one party, instead provides information which leads to immediate resolution.