Proximate preferences and almost full revelation in the Crawford–Sobel game

Abstract

Crawford and Sobel (Econometrica 50(6):1431–1451, 1982) is a seminal contribution that introduced the study of costless signalling of privately held information by an expert to a decision maker. Among the chief reasons for its widespread application is the comparative statics they develop between the extent of strategically transmitted information and the degree of conflict in the two players’ preferences. This paper completes their analysis by establishing that in their general model, almost full revelation obtains as the two players’ preferences get arbitrarily close to each other.