On Optimal Rules of Persuasion

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On Optimal Rules of Persuasion

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Jacob Glazer
Ariel Rubinstein

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Ariel Rubinstein

Abstract

A speaker wishes to persuade a listener to accept a certain request. The conditions under which the request is justified, from the listener's point of view, depend on the values of two aspects. The values of the aspects are known only to the speaker and the listener can check the value of at most one. A mechanism specifies a set of messages that the speaker can send and a rule that determines the listener's response, namely, which aspect he checks and whether he accepts or rejects the speaker's request. We study mechanisms that maximize the probability that the listener accepts the request when it is justified and rejects the request when it is unjustified, given that the speaker maximizes the probability that his request is accepted. We show that a simple optimal mechanism exists and can be found by solving a linear programming problem in which the set of constraints is derived from what we call the L-principle. Copyright The Econometric Society 2004.

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Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 72 (2004)
Issue (Month): 6 (November)
Pages: 1715-1736
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Handle: RePEc:ecm:emetrp:v:72:y:2004:i:6:p:1715-1736

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Toshiji Kawagoe & Hirokazu Takizawa, 2005. "Why Lying Pays: Truth Bias in the Communication with Conflicting Interests," Discussion papers 05018, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
Holthausen, Cornelia & Rønde, Thomas, 2005. "Cooperation in International Banking Supervision," CEPR Discussion Papers 4990, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Joel Watson & Jesse Bull, 2006. "Hard Evidence and Mechanism Design," University of California at San Diego, Economics Working Paper Series 2002-16R, Department of Economics, UC San Diego. [Downloadable!]
Other versions:
- Jesse Bull & Joel Watson, 2002. "Hard Evidence and Mechanism Design," University of California at San Diego, Economics Working Paper Series 2002-16, Department of Economics, UC San Diego. [Downloadable!]
- Joel Watson & Jesse Bull, 2004. "Hard Evidence and Mechanism Design," Econometric Society 2004 North American Winter Meetings 433, Econometric Society. [Downloadable!]
- Bull, Jesse & Watson, Joel, 2007. "Hard evidence and mechanism design," Games and Economic Behavior, Elsevier, vol. 58(1), pages 75-93, January. [Downloadable!] (restricted)
CAILLAUD, Bernard & TIROLE, Jean, 2007. "Consensus Building: How to Persuade a Group," IDEI Working Papers 435, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
Other versions:
- Bernard Caillaud & Jean Tirole, 2006. "Consensus building: How to persuade a group," PSE Working Papers 2006-19, PSE (Ecole normale supérieure). [Downloadable!]
- Bernard Caillaud & Jean Tirole, 2007. "Consensus Building: How to Persuade a Group," American Economic Review, American Economic Association, vol. 97(5), pages 1877-1900, December.
Sendhil Mullainathan & Joshua Schwartzstein & Andrei Shleifer, 2006. "Coarse Thinking and Persuasion," NBER Working Papers 12720, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Cornelia Holthausen & Thomas Rønde, 2003. "Cooperation in International Banking Supervision," CIE Discussion Papers 2004-02, University of Copenhagen. Department of Economics. Centre for Industrial Economics. [Downloadable!]
T. Lanzi & J. Mathis, 2004. "Argumentation in Sender-Receiver Games," THEMA Working Papers 2004-19, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]

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