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Changing Simplistic Worldviews

Author

Listed:
  • Maxim Senkov
  • Toygar T. Kerman

Abstract

We study a Bayesian persuasion model with two-dimensional states of the world, in which the sender (she) and receiver (he) have heterogeneous prior beliefs and care about different dimensions. The receiver is a naive agent who has a simplistic worldview: he ignores the dependency between the two dimensions of the state. We provide a characterization for the sender’s gain from persuasion both when the receiver is naive and when he is rational. We show that the receiver benefits from having a simplistic worldview if and only if it makes him perceive the states in which his interest is aligned with the sender as less likely.

Suggested Citation

  • Maxim Senkov & Toygar T. Kerman, 2024. "Changing Simplistic Worldviews," CERGE-EI Working Papers wp773, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp773
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    More about this item

    Keywords

    Bayesian persuasion; misspecified prior; correlation neglect;
    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
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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