Expert Communication to an Informed Decision Maker

In this model we study a game of strategic information transmission, where a decision maker is partially informed about the state of the world. We analyse the effect of this partial information on communication extending the Crawford-Sobel model. There are two forces at work, the bias in preferences leads to less information revelation, whereas the expert benefits ex ante if the decision maker has finer information. We analyse how the decision maker’s partial information in relation to the bias parameter can increase information revelation. We find, that the expected welfare of both agents increases independent of the decision maker’s prior information and communication improves for most information structures