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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
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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

    as
    1. Péter Eső & Balázs Szentes, 2007. "Optimal Information Disclosure in Auctions and the Handicap Auction," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 705-731.
    2. Ina A Taneva, 2015. "Information Design," ESE Discussion Papers 256, Edinburgh School of Economics, University of Edinburgh.
    3. John K.‐H. Quah & Bruno Strulovici, 2012. "Aggregating the Single Crossing Property," Econometrica, Econometric Society, vol. 80(5), pages 2333-2348, September.
    4. Jimmy Chan & Wing Suen, 2008. "A Spatial Theory of News Consumption and Electoral Competition," Review of Economic Studies, Oxford University Press, vol. 75(3), pages 699-728.
    5. Kolotilin, Anton, 2015. "Experimental design to persuade," Games and Economic Behavior, Elsevier, vol. 90(C), pages 215-226.
    6. Eduardo Perez-Richet, 2014. "Interim Bayesian Persuasion: First Steps," American Economic Review, American Economic Association, vol. 104(5), pages 469-474, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Dirk Bergemann & Stephen Morris, 2016. "Information Design, Bayesian Persuasion, and Bayes Correlated Equilibrium," American Economic Review, American Economic Association, vol. 106(5), pages 586-591, May.
    2. Di Tillio, Alfredo & Ottaviani, Marco & Sørensen, Peter Norman, 2016. "Persuasion Bias in Science: Can Economics Help?," CEPR Discussion Papers 11343, C.E.P.R. Discussion Papers.
    3. Dirk Bergemann & Stephen Morris, 2017. "Information Design: A Unified Perspective," Cowles Foundation Discussion Papers 2075R2, Cowles Foundation for Research in Economics, Yale University, revised Nov 2017.
    4. Raphael Boleslavsky & Bruce Carlin & Christopher Cotton, 2017. "Competing for Capital: Auditing and Credibility in Financial Reporting," Working Papers 1377, Queen's University, Department of Economics.
    5. Hao Li & Xianwen Shi, 2013. "Discriminatory Information Disclosure," Working Papers tecipa-497, University of Toronto, Department of Economics.
    6. Sareh Vosooghi, 2017. "Information Design In Coalition Formation Games," Working Papers 2017.28, Fondazione Eni Enrico Mattei.
    7. Raphael Boleslavsky & Christopher Cotton, 2018. "Limited capacity in project selection: competition through evidence production," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 385-421, March.
    8. repec:kap:pubcho:v:174:y:2018:i:1:d:10.1007_s11127-017-0485-1 is not listed on IDEAS
    9. Makoto Shimoji, 2016. "Rationalizable Persuasion," Discussion Papers 16/08, Department of Economics, University of York.
    10. repec:eee:gamebe:v:104:y:2017:i:c:p:632-655 is not listed on IDEAS
    11. Dirk Bergemann & Alessandro Bonatti & Alex Smolin, 2018. "The Design and Price of Information," American Economic Review, American Economic Association, vol. 108(1), pages 1-48, January.
    12. Ayça Özdoðan, 2016. "A Survey of Strategic Communication and Persuasion," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(1), pages 1-21.
    13. Artem Hulko & Mark Whitmeyer, 2017. "A Game of Random Variables," Papers 1712.08716, arXiv.org, revised Apr 2018.
    14. Jeffrey C. Ely, 2017. "Beeps," American Economic Review, American Economic Association, vol. 107(1), pages 31-53, January.
    15. repec:the:publsh:1805 is not listed on IDEAS
    16. Matthew Gentzkow & Emir Kamenica, 2016. "A Rothschild-Stiglitz Approach to Bayesian Persuasion," American Economic Review, American Economic Association, vol. 106(5), pages 597-601, May.
    17. Elias Tsakas & Nikolas Tsakas & Dimitrios Xefteris, 2017. "Resisting Persuasion," University of Cyprus Working Papers in Economics 07-2017, University of Cyprus Department of Economics.

    More about this item

    Keywords

    Bayesian persuasion; information disclosure; information design; mechanism design without transfers; experiments; persuasion mechanisms; media;

    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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