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Persuasion via Weak Institutions

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  • Elliot Lipnowski
  • Doron Ravid
  • Denis Shishkin

Abstract

A sender commissions a study to persuade a receiver but influences the report with some probability. We show that increasing this probability can benefit the receiver and can lead to a discontinuous drop in the sender’s payoffs. To derive our results, we geometrically characterize the sender’s highest equilibrium payoff, which is based on the concavification of a capped value function.

Suggested Citation

  • Elliot Lipnowski & Doron Ravid & Denis Shishkin, 2022. "Persuasion via Weak Institutions," Journal of Political Economy, University of Chicago Press, vol. 130(10), pages 2705-2730.
  • Handle: RePEc:ucp:jpolec:doi:10.1086/720462
    DOI: 10.1086/720462
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    Cited by:

    1. Eilat, Ran & Neeman, Zvika, 2023. "Communication with endogenous deception costs," Journal of Economic Theory, Elsevier, vol. 207(C).
    2. Redlicki, Bartosz & Redlicki, Jakub, 2022. "Communication with Costly and Detectable Falsification," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 452-470.
    3. Monte, Daniel & Linhares, Luis Henrique, 2023. "Stealth Startups, Clauses, and Add-ons: A Model of Strategic Obfuscation," MPRA Paper 115926, University Library of Munich, Germany.
    4. Alonso, Ricardo & Câmara, Odilon, 2021. "Organizing Data Analytics," CEPR Discussion Papers 16768, C.E.P.R. Discussion Papers.
    5. Andriy Zapechelnyuk, 2023. "On the equivalence of information design by uninformed and informed principals," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1051-1067, November.
    6. Qianjun Lyu & Wing Suen, 2023. "Information Design in Cheap Talk," CRC TR 224 Discussion Paper Series crctr224_2023_470, University of Bonn and University of Mannheim, Germany.
    7. Pei, Harry, 2023. "Repeated communication with private lying costs," Journal of Economic Theory, Elsevier, vol. 210(C).
    8. Zhou, Junya, 2023. "Costly verification and commitment in persuasion," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 1100-1142.

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