Multidimensional information acquisition

Abstract

We extend Che and Kartik [7] to the multidimensional state space. The decision maker consults an expert before making multiple independent decisions, then differences of opinion will create an incentive for the expert to acquire information costly but burden their communication. Under the assumption of correlated information acquisition and disclosure, in the n-dimensional setting, we prove the existence of the perfect Bayesian equilibrium and find when all the experts have the same opinion with the decision maker, consulting one expert for all the decisions is more beneficial than consulting several independent experts for different decisions. In the two-dimensional case, we show that the decision maker will never choose an expert with the same opinion in both dimensions.

Date of Award	2017
Original language	English
Awarding Institution	The Hong Kong University of Science and Technology