This paper studies strategic information transmission in a finite horizon environment where, each period, a privately informed expert sends a message and a decision-maker takes an action. We show that communication in this dynamic environment drastically differs from a one-shot game. Our main result is that, under certain conditions, full information revelation is possible. We provide a constructive method to build such fully revealing equilibria; our result obtains with rich communication, in which non-contiguous types pool together, thereby allowing dynamic manipulation of beliefs. Essentially, conditioning future information release on past actions improves incentives for information revelation.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Asymmetric information
- Cheap talk
- Dynamic strategic communication
- Full information revelation