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Mediated Persuasion

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  • Andrew Kosenko

Abstract

We study a game of strategic information design between a sender, who chooses state-dependent information structures, a mediator who can then garble the signals generated from these structures, and a receiver who takes an action after observing the signal generated by the first two players. We characterize sufficient conditions for information revelation, compare outcomes with and without a mediator and provide comparative statics with regard to the preferences of the sender and the mediator. We also provide novel conceptual and computational insights about the set of feasible posterior beliefs that the sender can induce, and use these results to obtain insights about equilibrium outcomes. The sender never benefits from mediation, while the receiver might. Strikingly, the receiver benefits when the mediator's preferences are not perfectly aligned with hers; rather the mediator should prefer more information revelation than the sender, but less than perfect revelation.

Suggested Citation

  • Andrew Kosenko, 2020. "Mediated Persuasion," Papers 2012.00098, arXiv.org, revised Dec 2020.
  • Handle: RePEc:arx:papers:2012.00098
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    References listed on IDEAS

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    1. Blume, Andreas, 2012. "A class of strategy-correlated equilibria in sender–receiver games," Games and Economic Behavior, Elsevier, vol. 75(2), pages 510-517.
    2. Robert J. Aumann, 1995. "Repeated Games with Incomplete Information," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011476, December.
    3. Alonso, Ricardo & Câmara, Odilon, 2016. "Bayesian persuasion with heterogeneous priors," Journal of Economic Theory, Elsevier, vol. 165(C), pages 672-706.
    4. Larry Samuelson, 2004. "Modeling Knowledge in Economic Analysis," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 367-403, June.
    5. Martin Pollrich, 2017. "Mediated audits," RAND Journal of Economics, RAND Corporation, vol. 48(1), pages 44-68, March.
    6. Ariel Rubinstein, 1997. "Modeling Bounded Rationality," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262681005, December.
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