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Persuasion and Optimal Stopping

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  • Andrew Koh
  • Sivakorn Sanguanmoo
  • Weijie Zhong

Abstract

We provide a unified analysis of how dynamic information should be designed in optimal stopping problems: a principal controls the flow of information about a payoff relevant state to persuade an agent to stop at the right time, in the right state, and choose the right action. We further show that for arbitrary preferences, intertemporal commitment is unnecessary: optimal dynamic information designs can always be made dynamically consistent.

Suggested Citation

  • Andrew Koh & Sivakorn Sanguanmoo & Weijie Zhong, 2024. "Persuasion and Optimal Stopping," Papers 2406.12278, arXiv.org, revised Aug 2024.
    • Handle: RePEc:arx:papers:2406.12278
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    References listed on IDEAS

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    1. Mark Armstrong & John Vickers, 2010. "A Model of Delegated Project Choice," Econometrica, Econometric Society, vol. 78(1), pages 213-244, January.
    2. Farrell, Joseph & Maskin, Eric, 1989. "Renegotiation in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 327-360, December.
    3. Douglas Bernheim, B. & Ray, Debraj, 1989. "Collective dynamic consistency in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 295-326, December.
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