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On the equivalence of information design by uninformed and informed principals

Author

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  • Andriy Zapechelnyuk

    (University of Edinburgh)

Abstract

We compare information design, or Bayesian persuasion, by an uninformed principal (who has no information about the state of the world when making her choice) and by an informed principal (who has private information and can condition her choice on that information). We show that, under the assumptions of monotone preferences of the principal and nondegenerate information structures, a Pareto undominated outcome is implementable by the uninformed principal if and only if it is implementable by the informed principal.

Suggested Citation

  • Andriy Zapechelnyuk, 2023. "On the equivalence of information design by uninformed and informed principals," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1051-1067, November.
    • Handle: RePEc:spr:joecth:v:76:y:2023:i:4:d:10.1007_s00199-023-01495-z
    DOI: 10.1007/s00199-023-01495-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Information design; Bayesian persuasion; Informed principal; Implementation; Sequential equilibrium;
    All these keywords.

    JEL classification:

    • 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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