Abstract
This paper investigates mediated communication between an informed sender and an uninformed receiver with conflicting preferences in the framework of Crawford and Sobel (1982). It provides a simple condition for mediation to be beneficial, that is, to give the receiver a higher ex-ante payoff than the uninformed decision. This condition in turn allows us to identify scenarios in which mediation is beneficial while all cheap-talk equilibria are uninformative. Our condition extends the conditions for beneficial mediation with a binary type space (Mitusch and Strausz, 2005) and mediation via a biased mediator (Ambrus et al., 2013). Finally, we show the connection between the identified condition and related conditions in other conflict resolution schemes: delegation (Alonso and Matouschek, 2008) and arbitration (Kovác and Mylovanov, 2009).
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