Dynamic learning and strategic communication

This paper investigates a dynamic model of strategic communication between a principal and an expert with con‡icting preferences. In each stage, the uninformed principal can select the precision of expert’s information about an unknown state without observing the information itself. We show that the principal can elicit perfect information from the expert about the state and achieve the …rst-best outcome in two stages only if the expert’s preference bias is not too large. If the state space is unbounded, full information revelation is possible for an arbitrarily large preference con‡ict. Moreover, full revelation of information is feasible in the more general frameworks than those considered in the literature, including the ones with non-quasiconcave and non-supermodular payo¤ functions and with a privately known bias of the expert. JEL classi…cation: C72, D81, D82, D83