Optimal communication to a group often entails a trade-off between precision of information conveyed and common understanding (or approximate common knowledge) of the information within the group. We argue that an understanding of this trade-off is central in many contexts, including central bank communication and the design of accounting standards, as well as understanding the design of language itself.
|Original language||English (US)|
|Number of pages||9|
|Journal||Journal of the European Economic Association|
|State||Published - Apr 2007|
All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)