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Persuasion of a Privately Informed Receiver

Author

Listed:
  • Anton Kolotilin

    (School of Economics, UNSW Business School, UNSW)

  • Tymofiy Mylovanov

    (University of Pittsburgh, Department of Economics)

  • Andriy Zapechelnyuk

    (Adam Smith Business School, University of Glasgow)

  • Ming Li

    (Concordia University and CIREQ)

Abstract

We study persuasion mechanisms in linear environments. A privately informed receiver chooses between two actions. A sender designs a persuasion mechanism that can condition the information disclosed to the receiver on the receiver’s report about his type. We establish the equivalence of implementation by persuasion 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," Discussion Papers 2016-21, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2016-21
    as

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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2016-21.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Bayesian persuasion; information disclosure; information design; mechanism 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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