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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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15540.

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Date of creation: Nov 2009
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Publication status: published as “Bayesian Persuasion” (with Emir Kamenica). American Economic Review . 101(6). October 2011.
Handle: RePEc:nbr:nberwo:15540

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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
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Cited by:
  1. Chassang, Sylvain & Padró i Miquel, Gerard & Snowberg, Erik, 2010. "Selective Trials: A Principal-Agent Approach to Randomized Controlled Experiments," CEPR Discussion Papers 8003, C.E.P.R. Discussion Papers.
  2. Dirk Bergemann & Stephen Morris, 2011. "Robust Predictions in Games with Incomplete Information," Cowles Foundation Discussion Papers 1821, Cowles Foundation for Research in Economics, Yale University.
  3. 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.
  4. Johannes Horner & Andrzej Skrzypacz, 2009. "Selling Information," Cowles Foundation Discussion Papers 1743R, Cowles Foundation for Research in Economics, Yale University, revised Nov 2012.
  5. Jacquemet, Nicolas & Koessler, Frédéric, 2013. "Using or hiding private information? An experimental study of zero-sum repeated games with incomplete information," Games and Economic Behavior, Elsevier, vol. 78(C), pages 103-120.
  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. Ralph Boleslavsky & Tracy R. Lewis, 2011. "Advocacy and Dynamic Delegation," Working Papers 2011-7, University of Miami, Department of Economics.

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