The Supply of Information by a Concerned Expert *

  title={The Supply of Information by a Concerned Expert *},
  author={Andrew Caplin and John Leahy},
Howmuch information should a policy maker pass on to a currently ill-informed citizen? In this paper, we address this classic question of Crawford and Sobel [1983] in a setting in which beliefs impact utility, as in Kreps and Porteus [1978]. We show that this simple amendment has far-reaching implications. In particular, our question cannot be answered using a utility function with standard revealed preference foundations: revealed preference cannot tell us whether in a particular state s a… CONTINUE READING

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