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Long persuasion games

Author

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  • Forges, Françoise
  • Koessler, Frédéric

Abstract

This paper characterizes geometrically the sets of all Nash and perfect Bayesian equilibrium payoffs achievable with unmediated communication in persuasion games, i.e., games with an informed expert and an uninformed decisionmaker in which the expert's information is certifiable. The first equilibrium characterization is provided for unilateral persuasion games, and the second for multistage, bilateral persuasion games. As in Aumann and Hart [R.J. Aumann, S. Hart, Long cheap talk, Econometrica 71 (6) (2003) 1619-1660], we use the concepts of diconvexification and dimartingale. A leading example illustrates both geometric characterizations and shows how the expert, whatever his type, can increase his equilibrium payoff compared to all equilibria of the unilateral persuasion game by delaying information certification.

Suggested Citation

  • Forges, Françoise & Koessler, Frédéric, 2008. "Long persuasion games," Journal of Economic Theory, Elsevier, vol. 143(1), pages 1-35, November.
    • Handle: RePEc:eee:jetheo:v:143:y:2008:i:1:p:1-35
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    Cited by:

    1. Elchanan Ben-Porath & Eddie Dekel & Barton L Lipman, 2018. "Disclosure and Choice," Review of Economic Studies, Oxford University Press, vol. 85(3), pages 1471-1501.
    2. Jacquemet, Nicolas & Koessler, Frédéric, 2013. "Using or hiding private information? An experimental study of zero-sum repeated games with incomplete information," Games and Economic Behavior, Elsevier, vol. 78(C), pages 103-120.
    3. Frédéric Koessler & Françoise Forges, 2008. "Multistage Communication With And Without Verifiable Types," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 145-164.
    4. Ben-Porath, Elchanan & Lipman, Barton L., 2012. "Implementation with partial provability," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1689-1724.
    5. Golosov, Mikhail & Skreta, Vasiliki & Tsyvinski, Aleh & Wilson, Andrea, 2014. "Dynamic strategic information transmission," Journal of Economic Theory, Elsevier, vol. 151(C), pages 304-341.
    6. Arnold Polanski & Mark Quement, 2023. "The battle of opinion: dynamic information revelation by ideological senders," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(2), pages 463-483, June.
    7. Hitoshi Sadakane, 2017. "Multistage Information Transmission with Voluntary Monetary Transfer," ISER Discussion Paper 1006rr, Institute of Social and Economic Research, Osaka University, revised Jan 2018.
    8. Johannes Hörner & Andrzej Skrzypacz, 2016. "Selling Information," Journal of Political Economy, University of Chicago Press, vol. 124(6), pages 1515-1562.
    9. Elchanan Ben-Porath & Barton L. Lipman, 2009. "Implementation and Partial Provability," Boston University - Department of Economics - Working Papers Series wp2009-002, Boston University - Department of Economics.
    10. Eso, Peter & Wallace, Chris, 2016. "Persuasion and Pricing : Dynamic Trading with Hard Evidence," CRETA Online Discussion Paper Series 24, Centre for Research in Economic Theory and its Applications CRETA.
    11. Solan, Eilon & Solan, Omri N. & Solan, Ron, 2020. "Jointly controlled lotteries with biased coins," Games and Economic Behavior, Elsevier, vol. 119(C), pages 383-391.
    12. Miura, Shintaro, 2014. "A characterization of equilibrium set of persuasion games with binary actions," Journal of Mathematical Economics, Elsevier, vol. 51(C), pages 55-68.
    13. Hitoshi Sadakane, 2017. "Multistage Information Transmission with Voluntary Monetary Transfer," ISER Discussion Paper 1006, Institute of Social and Economic Research, Osaka University.
    14. Shih-Tang Su & Vijay G. Subramanian & Grant Schoenebeck, 2021. "Bayesian Persuasion in Sequential Trials," Papers 2110.09594, arXiv.org, revised Nov 2021.
    15. Hitoshi Sadakane, 2017. "Multistage Information Transmission with Voluntary Monetary Transfer," ISER Discussion Paper 1006r, Institute of Social and Economic Research, Osaka University, revised Jun 2018.
    16. Honryo, Takakazu, 2018. "Dynamic persuasion," Journal of Economic Theory, Elsevier, vol. 178(C), pages 36-58.
    17. Wagner, P.Achim, 2011. "Unmediated communication with partially verifiable types," Journal of Mathematical Economics, Elsevier, vol. 47(1), pages 99-107, January.
    18. Hedlund, Jonas, 2015. "Persuasion with communication costs," Games and Economic Behavior, Elsevier, vol. 92(C), pages 28-40.

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    More about this item

    Keywords

    Belief consistency Cheap talk Diconvexification Dimartingale Disclosure of certifiable information Jointly controlled lotteries Long conversation Persuasion Sequential rationality Verifiable types;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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