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Derandomization of persuasion mechanisms

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  • Zeng, Yishu

Abstract

We consider a setting where one sender can communicate with several privately informed receivers through a persuasion mechanism before the receivers play a game. We show that for any potentially randomized persuasion mechanism, under certain conditions, there is an effectively equivalent deterministic persuasion mechanism, and these two mechanisms have the same set of equilibria. We exhibit the usefulness of our result in an information disclosure application, where our technique helps to derive the optimal persuasion mechanism. Overall, this paper provides a rationale for the fact that persuasion mechanisms are often deterministic in practice.

Suggested Citation

  • Zeng, Yishu, 2023. "Derandomization of persuasion mechanisms," Journal of Economic Theory, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:jetheo:v:212:y:2023:i:c:s0022053123000868
    DOI: 10.1016/j.jet.2023.105690
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    References listed on IDEAS

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    More about this item

    Keywords

    Derandomization; Persuasion mechanism; Bayesian persuasion; Information design;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative 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

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