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Experimental design to persuade

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  • Kolotilin, Anton

Abstract

A sender chooses ex ante how information will be disclosed ex post. A receiver obtains public information and information disclosed by the sender. Then he takes one of two actions. The sender wishes to maximize the probability that the receiver takes the desired action. The sender optimally discloses only whether the receiver's utility is above a cutoff. I derive necessary and sufficient conditions for the sender's and receiver's welfare to be monotonic in information. In particular, the sender's welfare increases with the precision of the sender's information and decreases with the precision of public information.

Suggested Citation

  • Kolotilin, Anton, 2015. "Experimental design to persuade," Games and Economic Behavior, Elsevier, vol. 90(C), pages 215-226.
  • Handle: RePEc:eee:gamebe:v:90:y:2015:i:c:p:215-226
    DOI: 10.1016/j.geb.2015.02.006
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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

    1. Ludmila Matyskova, 2018. "Bayesian Persuasion with Costly Information Acquisition," CERGE-EI Working Papers wp614, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    2. Alonso, Ricardo & Câmara, Odilon, 2016. "Bayesian persuasion with heterogeneous priors," Journal of Economic Theory, Elsevier, vol. 165(C), pages 672-706.
    3. Hedlund, Jonas, 2017. "Bayesian persuasion by a privately informed sender," Journal of Economic Theory, Elsevier, vol. 167(C), pages 229-268.
    4. Gabriele Gratton & Richard Holden & Anton Kolotilin, 2015. "Timing Information Flows," Discussion Papers 2015-16, School of Economics, The University of New South Wales.
    5. repec:eee:gamebe:v:104:y:2017:i:c:p:632-655 is not listed on IDEAS
    6. repec:wly:emetrp:v:85:y:2017:i:6:p:1949-1964 is not listed on IDEAS
    7. Hodler, Roland & Loertscher, Simon & Rohner, Dominic, 2014. "Persuasion, binary choice, and the costs of dishonesty," Economics Letters, Elsevier, vol. 124(2), pages 195-198.
    8. Anton Kolotilin & Tymofiy Mylovanov & Andriy Zapechelnyuk & Ming Li, 2017. "Persuasion of a Privately Informed Receiver," Econometrica, Econometric Society, vol. 85(6), pages 1949-1964, November.
    9. James Best & Daniel Quigley, 2016. "Persuasion for the Long-Run," Economics Papers 2016-W12, Economics Group, Nuffield College, University of Oxford.
    10. Hedlund, Jonas, 2014. "Bayesian signaling," Working Papers 0577, University of Heidelberg, Department of Economics.
    11. repec:the:publsh:1805 is not listed on IDEAS
    12. Anton Kolotilin, 2013. "Optimal Information Disclosure: Quantity vs. Quality," Discussion Papers 2013-19, School of Economics, The University of New South Wales.

    More about this item

    Keywords

    Information disclosure; Persuasion; Stochastic orders;

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • 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

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