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Persuasion Meets Delegation

Author

Listed:
  • Anton Kolotilin

    (School of Economics, UNSW Business School, UNSW Sydney)

  • Andriy Zapechelnyuk

    (School of Economics and Finance, University of St Andrews)

Abstract

There are two common ways for a principal to influence the decision making of an agent. One is to manipulate the agent's information (persuasion problem). Another is to limit the agent's decisions (delegation problem). We show that, under general assumptions, these two problems are equivalent; so solving one problem solves the other. We illustrate how the methods developed in the persuasion literature can be applied to address unsolved delegation problems by considering monopoly regulation with a participation constraint.

Suggested Citation

  • Anton Kolotilin & Andriy Zapechelnyuk, 2018. "Persuasion Meets Delegation," Discussion Papers 2018-06, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2018-06
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2018-06.pdf
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    Cited by:

    1. Kolotilin, Anton & Li, Hongyi, 2021. "Relational communication," Theoretical Economics, Econometric Society, vol. 16(4), November.
    2. Andreas Kleiner, 2022. "Optimal Delegation in a Multidimensional World," Papers 2208.11835, arXiv.org.
    3. Andriy Zapechelnyuk, 2020. "Optimal Quality Certification," American Economic Review: Insights, American Economic Association, vol. 2(2), pages 161-176, June.
    4. Parakhonyak, Alexei & Vikander, Nick, 2023. "Information design through scarcity and social learning," Journal of Economic Theory, Elsevier, vol. 207(C).
    5. Maxim Ivanov, 2021. "Optimal monotone signals in Bayesian persuasion mechanisms," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 955-1000, October.
    6. Jo~ao Thereze & Udayan Vaidya, 2025. "Delegated Contracting," Papers 2508.19326, arXiv.org.
    7. Manuel Foerster & Daniel Habermacher, 2025. "Authority, Communication, and Internal Markets," Working Papers 361, Red Nacional de Investigadores en Economía (RedNIE).
    8. Ginzburg, Boris, 2019. "Optimal information censorship," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 377-385.
    9. Andreas Kleiner & Benny Moldovanu & Philipp Strack, 2021. "Extreme Points and Majorization: Economic Applications," Econometrica, Econometric Society, vol. 89(4), pages 1557-1593, July.
    10. Hu, Xiaoxiao & Lei, Haoran, 2025. "The optimality of (stochastic) veto delegation," Games and Economic Behavior, Elsevier, vol. 150(C), pages 215-234.
    11. Emir Kamenica & Kyungmin Kim & Andriy Zapechelnyuk, 2021. "Bayesian persuasion and information design: perspectives and open issues," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 701-704, October.

    More about this item

    Keywords

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    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
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation

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