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Competition in persuasion: An experiment

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  • Wu, Wenhao
  • Ye, Bohan

Abstract

We experimentally investigate whether competition stimulates information revelation, by comparing two Bayesian persuasion models. One model has one sender (Kamenica and Gentzkow, 2011), and the other has two competing senders who move sequentially (Wu, 2022). The one-sender treatment provides strong support for Kamenica and Gentzkow (2011), where the sender uses a noisy signaling device and the receiver complies with his suggestions. In the two-sender treatment, we find that: (1) overall, senders reveal more information; (2) the first sender uses the fully-revealing device more frequently than the sender in the one-sender treatment; (3) the second sender exhibits a “competitive” behavior pattern; (4) the receiver uses information from both sides. However, contrary to Wu (2022), competition does not lead to full information. To rationalize the behavior, we use the Quantal Response Equilibrium model to explain the features of the empirical results.

Suggested Citation

  • Wu, Wenhao & Ye, Bohan, 2023. "Competition in persuasion: An experiment," Games and Economic Behavior, Elsevier, vol. 138(C), pages 72-89.
    • Handle: RePEc:eee:gamebe:v:138:y:2023:i:c:p:72-89
    DOI: 10.1016/j.geb.2022.12.003
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    References listed on IDEAS

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    1. Au, Pak Hung & Kawai, Keiichi, 2020. "Competitive information disclosure by multiple senders," Games and Economic Behavior, Elsevier, vol. 119(C), pages 56-78.
    2. Marco Battaglini, 2002. "Multiple Referrals and Multidimensional Cheap Talk," Econometrica, Econometric Society, vol. 70(4), pages 1379-1401, July.
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    11. Battaglini, Marco & Lai, Ernest K. & Lim, Wooyoung & Wang, Joseph Tao-Yi, 2019. "The Informational Theory of Legislative Committees: An Experimental Analysis," American Political Science Review, Cambridge University Press, vol. 113(1), pages 55-76, February.
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    Cited by:

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    More about this item

    Keywords

    Bayesian persuasion; Multiple senders; Laboratory experiment; Quantal response equilibrium;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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