Public Communication with Externalities
Theoretical Economics
2025-09-12 v1
Abstract
This paper develops a model in which a sender strategically communicates with a group of receivers whose payoffs depend on the sender's information. It is shown that aggregate payoff externalities create an endogenous conflict of interests between the sender and the receivers, rendering full information revelation, in general infeasible. We demonstrate that an exogenous bias in the sender's preferences can improve public information provision and raise welfare. Two applications of the setup are discussed.
Cite
@article{arxiv.2509.08850,
title = {Public Communication with Externalities},
author = {Georgy Lukyanov and Konstantin Shamruk and Tong Su and Ahmed Wakrim},
journal= {arXiv preprint arXiv:2509.08850},
year = {2025}
}
Comments
Author's accepted manuscript (postprint). License: CC BY-NC-ND 4.0