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Bayesian Persuasion

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  • Emir Kamenica
  • Matthew Gentzkow

Abstract

When is it possible for one person to persuade another to change her action? We take a mechanism design approach to this question. Taking preferences and initial beliefs as given, we introduce the notion of a persuasion mechanism: a game between Sender and Receiver defined by an information structure and a message technology. We derive necessary and sufficient conditions for the existence of a persuasion mechanism that strictly benefits Sender. We characterize the optimal mechanism. Finally, we analyze several examples that illustrate the applicability of our results.

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Bibliographic Info

Paper provided by www.najecon.org in its series NajEcon Working Paper Reviews with number 814577000000000369.

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Date of creation: 14 Oct 2009
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Handle: RePEc:cla:najeco:814577000000000369

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. “Bayesian Persuasion,” E. Kamenica & M. Gentzkow (2011)
    by afinetheorem in A Fine Theorem on 2012-08-27 07:49:36
  2. “Bayesian Persuasion,” E. Kamenica & M. Gentzkow (2011)
    by afinetheorem in A Fine Theorem on 2012-08-27 07:49:36
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Dirk Bergemann & Stephen Morris, 2011. "Robust Predictions in Games with Incomplete Information," Cowles Foundation Discussion Papers 1821RR, Cowles Foundation for Research in Economics, Yale University, revised Oct 2012.
  2. Sylvain Chassang & Gerard Padro i Miquel & Erik Snowberg, 2010. "Selective Trials: A Principal-Agent Approach to Randomized Controlled Experiments," NBER Working Papers 16343, National Bureau of Economic Research, Inc.
  3. Johannes Horner & Andrzej Skrzypacz, 2009. "Selling Information," Cowles Foundation Discussion Papers 1743R, Cowles Foundation for Research in Economics, Yale University, revised Jun 2011.
  4. Ralph Boleslavsky & Tracy R. Lewis, 2011. "Advocacy and Dynamic Delegation," Working Papers 2011-7, University of Miami, Department of Economics.
  5. Nicolas Jacquemet & Frédéric Koessler, 2011. "Using or Hiding Private Information? An experimental Study of Zero-Sum Repeated Games with Incomplete Information," Documents de travail du Centre d'Economie de la Sorbonne 11002, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  6. Ralph Boleslavsky & Christopher Cotton, 2011. "Learning More by Doing Less," Working Papers 2011-6, University of Miami, Department of Economics.
  7. Dirk Bergemann & Stephen Morris, 2011. "Correlated Equilibrium in Games with Incomplete Information," Cowles Foundation Discussion Papers 1822, Cowles Foundation for Research in Economics, Yale University.
  8. Matthew Gentzkow & Jesse M. Shapiro & Michael Sinkinson, 2009. "The Effect of Newspaper Entry and Exit on Electoral Politics," NBER Working Papers 15544, National Bureau of Economic Research, Inc.

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