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Persuasion Meets Delegation

Author

Listed:
  • Anton Kolotilin

    (School of Economics, UNSW Business School)

  • Andriy Zapechelnyuk

    (School of Economics, University of Edinburgh)

Abstract

A principal can restrict an agent’s information (the persuasion problem) or discretion (the delegation problem). We study these two problems under standard single-crossing assumptions on the agent’s marginal utility. We show that these problems are equivalent on the set of monotone stochastic mechanisms, implying, in particular, the equivalence of deterministic delegation and monotone partitional persuasion. We also show that the monotonicity restriction is superfluous for linear persuasion and linear delegation, implying their equivalence on the set of all stochastic mechanisms. Finally, using tools from the persuasion literature, we characterize optimal delegation mechanisms, thereby generalizing and extending existing results in the delegation literature.

Suggested Citation

  • Anton Kolotilin & Andriy Zapechelnyuk, 2024. "Persuasion Meets Delegation," Discussion Papers 2024-04, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2024-04
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2024-04.pdf
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    Cited by:

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    2. Kolotilin, Anton & Li, Hongyi, 2021. "Relational communication," Theoretical Economics, Econometric Society, vol. 16(4), November.
    3. Andreas Kleiner, 2022. "Optimal Delegation in a Multidimensional World," Papers 2208.11835, arXiv.org.
    4. Andriy Zapechelnyuk, 2020. "Optimal Quality Certification," American Economic Review: Insights, American Economic Association, vol. 2(2), pages 161-176, June.
    5. Parakhonyak, Alexei & Vikander, Nick, 2023. "Information design through scarcity and social learning," Journal of Economic Theory, Elsevier, vol. 207(C).
    6. 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.
    7. Jo~ao Thereze & Udayan Vaidya, 2025. "Delegated Contracting," Papers 2508.19326, arXiv.org.
    8. Manuel Foerster & Daniel Habermacher, 2025. "Authority, Communication, and Internal Markets," Working Papers 361, Red Nacional de Investigadores en Economía (RedNIE).
    9. Ginzburg, Boris, 2019. "Optimal information censorship," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 377-385.
    10. Andreas Kleiner & Benny Moldovanu & Philipp Strack, 2021. "Extreme Points and Majorization: Economic Applications," Econometrica, Econometric Society, vol. 89(4), pages 1557-1593, July.
    11. Hu, Xiaoxiao & Lei, Haoran, 2025. "The optimality of (stochastic) veto delegation," Games and Economic Behavior, Elsevier, vol. 150(C), pages 215-234.
    12. 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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