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Engagement Maximization

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  • Benjamin H'ebert
  • Weijie Zhong

Abstract

We consider the problem of a Bayesian agent receiving signals over time and then taking an action. The agent chooses when to stop and take an action based on her current beliefs, and prefers (all else equal) to act sooner rather than later. The signals received by the agent are determined by a principal, whose objective is to maximize engagement (the total attention paid by the agent to the signals). We show that engagement maximization by the principal minimizes the agent's welfare; the agent does no better than if she gathered no information. Relative to a benchmark in which the agent chooses the signals, engagement maximization induces excessive information acquisition and extreme beliefs. An optimal strategy for the principal involves "suspensive signals" that lead the agent's belief to become "less certain than the prior" and "decisive signals" that lead the agent's belief to jump to the stopping region.

Suggested Citation

  • Benjamin H'ebert & Weijie Zhong, 2022. "Engagement Maximization," Papers 2207.00685, arXiv.org, revised Oct 2022.
    • Handle: RePEc:arx:papers:2207.00685
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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