Optimal Communication

TitleOptimal Communication
Publication TypeJournal Article
Year of Publication2007
AuthorsMorris S, Shin HSong
JournalJournal of the European Economic Association
Pagination - 602
Date PublishedApril 2007
ISBN Number1542-4766, 1542-4766
KeywordsAsymmetric and Private Information, Mechanism Design (D82), Common Knowledge, Information, Knowledge, Search, Learning, Information and Knowledge, Communication, Belief, Unawareness (D83)
AbstractOptimal 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.