Brownbag Seminars: Interesting Conversations (joint with Paul Voss)

Abstract: We provide a theory of interesting conversations. Two agents with different interests take turns talking about a topic of their choice. Talking about a single topic allows to delve deeper, making the conversation more informative or simply more enjoyable. To capture this, we assume that the marginal utility from conversing increases when the agents stay on topic. We show that the equilibrium conversation is extreme in that it either maximizes or minimizes welfare. Longer conversations are more efficient. In short (long) conversations, having the first (last) word matters. Applications range from the emergence of echo chambers to team production.