| Francesca Barigozzi, GREMAQ, University of Toulouse Bertrand Villeneuve, University of Toulouse |
| Influencing the Misinformed Behavior |
| Session: C-12-7 Wednesday 16 August 2000 by Villeneuve, Bertrand |
| In many instances where public policy concerning externalities is considered, ensuring an adequate perception of the public is not less important than setting ideal taxes. We show however that public authorities are typically incited to deliver biased information (exaggeration or attenuation) to economize on the coercive instruments. Technically, we solve of model of signal cum cheap-talk. Anti-smoking campaigns and policy against antibiotics over-consumption serve as illustrations of our points. |
| Submitted paper full-text in .pdf |