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Persuasion Of A Privately Informed Receiver

Author

Listed:
  • Anton Kolotilin
  • Tymofiy Mylovanov
  • Andriy Zapechelnyuk
  • Ming Li

Abstract

We study persuasion mechanisms in linear environments. A privately informed receiver chooses between two actions. A sender designs a persuasion mech- anism that can condition the information disclosed to the receiver on the receiver’s report about his type. We establish the equivalence of implementation by persua- sion mechanisms and by experiments. We also characterize the optimal persuasion mechanisms. In particular, if the density of the receiver’s type is log-concave, then the optimal persuasion mechanism reveals the state if and only if the state is below a threshold. We apply our results to the design of media censorship policies.

Suggested Citation

  • Anton Kolotilin & Tymofiy Mylovanov & Andriy Zapechelnyuk & Ming Li, 2016. "Persuasion Of A Privately Informed Receiver," Working Papers 2016_22, Business School - Economics, University of Glasgow.
  • Handle: RePEc:gla:glaewp:2016_22
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    File URL: http://www.gla.ac.uk/media/media_500913_en.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Bayesian persuasion; information disclosure; information design; mech- anism design without transfers; experiments; persuasion mechanisms; media;
    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
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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