Muddled Information

S-Tier
Journal: Journal of Political Economy
Year: 2019
Volume: 127
Issue: 4
Pages: 1739 - 1776

Authors (2)

Alex Frankel (not in RePEc) Navin Kartik (Yale University)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study a model of signaling in which agents are heterogeneous on two dimensions. An agent's natural action is the action taken in the absence of signaling concerns. Her gaming ability parameterizes the cost of increasing the action. Equilibrium behavior muddles information across dimensions. As incentives to take higher actions increase--due to higher stakes or more manipulable signaling technology--more information is revealed about gaming ability, and less about natural actions. We explore a new externality: showing agents' actions to additional observers can worsen information for existing observers. Applications to credit scoring, school testing, and web searching are discussed.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/701604
Journal Field
General
Author Count
2
Added to Database
2026-01-25