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Robust persuasion of a privately informed receiver

Author

Listed:
  • Ju Hu

    (Peking University)

  • Xi Weng

    (Peking University)

Abstract

This paper studies robust Bayesian persuasion of a privately informed receiver in a binary environment, where an ambiguity-averse sender with a maxmin expected utility function has limited knowledge about the receiver’s private information source. We develop a novel method to solve the sender’s information design problem. Our main result shows that the sender’s optimal information structure can be found within the class of linear-contingent-payoff information structures. We also fully characterize the sender’s optimal linear-contingent-payoff information structure and analyze the impact of ambiguity on the sender’s payoff.

Suggested Citation

  • Ju Hu & Xi Weng, 2021. "Robust persuasion of a privately informed receiver," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 909-953, October.
    • Handle: RePEc:spr:joecth:v:72:y:2021:i:3:d:10.1007_s00199-020-01299-5
    DOI: 10.1007/s00199-020-01299-5
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eitan Sapiro-Gheiler, 2021. "Persuasion with Ambiguous Receiver Preferences," Papers 2109.11536, arXiv.org, revised Aug 2023.
    2. Piotr Dworczak & Alessandro Pavan, 2022. "Preparing for the Worst but Hoping for the Best: Robust (Bayesian) Persuasion," Econometrica, Econometric Society, vol. 90(5), pages 2017-2051, September.
    3. Jonas Hedlund & T. Florian Kauffeldt & Malte Lammert, 2021. "Persuasion under ambiguity," Theory and Decision, Springer, vol. 90(3), pages 455-482, May.
    4. Jerry Anunrojwong & Krishnamurthy Iyer & David Lingenbrink, 2024. "Persuading Risk-Conscious Agents: A Geometric Approach," Operations Research, INFORMS, vol. 72(1), pages 151-166, January.
    5. Krishnamurthy Iyer & Haifeng Xu & You Zu, 2023. "Markov Persuasion Processes with Endogenous Agent Beliefs," Papers 2307.03181, arXiv.org, revised Jul 2023.
    6. Takashi Ui, 2022. "Optimal and Robust Disclosure of Public Information," Papers 2203.16809, arXiv.org, revised Apr 2022.
    7. Keegan Harris & Nicole Immorlica & Brendan Lucier & Aleksandrs Slivkins, 2023. "Algorithmic Persuasion Through Simulation," Papers 2311.18138, arXiv.org, revised Apr 2024.
    8. Babichenko, Yakov & Talgam-Cohen, Inbal & Xu, Haifeng & Zabarnyi, Konstantin, 2022. "Regret-minimizing Bayesian persuasion," Games and Economic Behavior, Elsevier, vol. 136(C), pages 226-248.
    9. Takashi Ui, 2022. "Optimal and Robust Disclosure of Public Information," Working Papers on Central Bank Communication 039, University of Tokyo, Graduate School of Economics.
    10. You Zu & Krishnamurthy Iyer & Haifeng Xu, 2021. "Learning to Persuade on the Fly: Robustness Against Ignorance," Papers 2102.10156, arXiv.org.

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    More about this item

    Keywords

    Bayesian persuasion; Ambiguity aversion; Maxmin utility; Private information; Robustness;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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