Research Article

A communication model with limited information-processing capacity of recipients

  1. Oleg V. Pavlov1,
  2. Robert K. Plice2,
  3. Nigel P. Melville3

Article first published online: 13 NOV 2008

DOI: 10.1002/sdr.407

Issue

System Dynamics Review

System Dynamics Review

Special Issue: Information Systems Research with System Dynamics

Volume 24, Issue 3, pages 377–405, Autumn (Fall) 2008

Additional Information

How to Cite

Pavlov, O. V., Plice, R. K. and Melville, N. P. (2008), A communication model with limited information-processing capacity of recipients. System Dynamics Review, 24: 377–405. doi: 10.1002/sdr.407

Author Information

  1. 1

    Department of Social Science and Policy Studies, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA 01609, U.S.A.

  2. 2

    Information and Decision Systems, San Diego State University, San Diego, CA, 92182, U.S.A.

  3. 3

    Stephen M. Ross School of Business, University of Michigan, Ann Arbor, MI, 48109, U.S.A.

Publication History

  1. Issue published online: 17 DEC 2008
  2. Article first published online: 13 NOV 2008
  3. Manuscript Accepted:
  4. Manuscript Received:

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Abstract

We develop a system dynamics model of message-based communication, where the information-processing capacity of message recipients is limited. Profit-seeking broadcasters send messages, but only some of these messages are valuable to recipients. Recipients cannot determine whether or not a message is valuable until it is processed. Information overload occurs when more messages arrive than recipients can process. Numerical experiments test alternative approaches for mitigating information overload. We show that message filtering can increase the flow of for-profit communication. Market-based mechanisms, while aimed at improving the social outcome, can actually lead to suboptimal results and to a complete collapse of for-profit communication. Copyright © 2008 John Wiley & Sons, Ltd.

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