IDEAS home Printed from https://ideas.repec.org/a/aea/aejmic/v13y2021i1p179-94.html
   My bibliography  Save this article

Dynamic Persuasion with Outside Information

Author

Listed:
  • Jacopo Bizzotto
  • Jesper Rüdiger
  • Adrien Vigier

Abstract

A principal seeks to persuade an agent to accept an offer of uncertain value before a deadline expires. The principal can generate information, but exerts no control over exogenous outside information. The combined effect of the deadline and outside information creates incentives for the principal to keep uncertainty high in the first periods so as to persuade the agent close to the deadline. We characterize the equilibrium, compare it to the single-player decision problem in which exogenous outside information is the agent's only source of information, and examine the welfare implications of our analysis.

Suggested Citation

  • Jacopo Bizzotto & Jesper Rüdiger & Adrien Vigier, 2021. "Dynamic Persuasion with Outside Information," American Economic Journal: Microeconomics, American Economic Association, vol. 13(1), pages 179-194, February.
    • Handle: RePEc:aea:aejmic:v:13:y:2021:i:1:p:179-94
    DOI: 10.1257/mic.20180141
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/mic.20180141
    Download Restriction: no
    File URL: https://doi.org/10.3886/E117901V1
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20180141.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20180141.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/mic.20180141?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chang Liu, 2021. "Motivating Effort with Information about Future Rewards," Papers 2110.05643, arXiv.org, revised Oct 2023.
    2. Escudé, Matteo & Sinander, Ludvig, 2023. "Slow persuasion," Theoretical Economics, Econometric Society, vol. 18(1), January.
      • Matteo Escud'e & Ludvig Sinander, 2019. "Slow persuasion," Papers 1903.09055, arXiv.org, revised Apr 2022.
    3. Matysková, Ludmila & Montes, Alfonso, 2023. "Bayesian persuasion with costly information acquisition," Journal of Economic Theory, Elsevier, vol. 211(C).
    4. Kaya, Ayça, 2023. "Paying with information," Theoretical Economics, Econometric Society, vol. 18(2), May.
    5. Parakhonyak, Alexei & Vikander, Nick, 2023. "Information design through scarcity and social learning," Journal of Economic Theory, Elsevier, vol. 207(C).

    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmic:v:13:y:2021:i:1:p:179-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.