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Long Persuasion Games

  • Francoise Forges

    ()

    (CEREMADE, Paris-Dauphine University)

  • Frederic Koessler

    ()

    (THEMA, Université de Cergy-Pontoise)

This paper characterizes geometrically the set of all Nash equilibrium payoffs achievable with unmediated communication in persuasion games, i.e., games with an informed expert and an uninformed decisionmaker in which the expert's information is certifiable. The first equilibrium characterization is provided for unilateral persuasion games, and the second for multistage, bilateral persuasion games. As in Aumann and Hart (2003), we use the concepts of diconvexification and dimartingale. A leading example illustrates both geometric characterizations and shows how the expert, whatever his type, can increase his equilibrium payoff compared to all equilibria of the unilateral persuasion game by delaying information certification.

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Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2006-01.

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Date of creation: Feb 2006
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Handle: RePEc:ema:worpap:2006-01
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