IDEAS home Printed from https://ideas.repec.org/p/pen/papers/24-033.html
   My bibliography  Save this paper

Commitment and Randomization in Communication

Author

Listed:
  • Emir Kamenica

    (University of Chicago)

  • Xiao Lin

    (University of Pennsylvania)

Abstract

When does a Sender, in a Sender-Receiver game, strictly value commitment? In a setting with finite actions and finite states, we establish that, generically, Sender values commitment if and only if he values randomization. In other words, commitment has no value if and only if a partitional experiment is optimal under commitment. Moreover, if Sender’s preferred cheap-talk equilibrium necessarily involves randomization, then Sender values commitment. We also ask: how often (i.e., for what share of preference profiles) does commitment have no value? For any prior, any independent, atomless distribution of preferences, and any state space: if there are |A| actions, the likelihood that commitment has no value is at least 1 |A||A| . As the number of states grows large, this likelihood converges precisely to 1 |A||A| .

Suggested Citation

  • Emir Kamenica & Xiao Lin, 2024. "Commitment and Randomization in Communication," PIER Working Paper Archive 24-033, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  • Handle: RePEc:pen:papers:24-033
    as

    Download full text from publisher

    File URL: https://economics.sas.upenn.edu/system/files/working-papers/24-033%20PIER%20Paper%20Submission.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Laura Doval & Vasiliki Skreta, 2022. "Mechanism Design With Limited Commitment," Econometrica, Econometric Society, vol. 90(4), pages 1463-1500, July.
    2. James Best & Daniel Quigley, 2024. "Persuasion for the Long Run," Journal of Political Economy, University of Chicago Press, vol. 132(5), pages 1740-1791.
    3. Frédéric Koessler & Vasiliki Skreta, 2023. "Informed Information Design," Journal of Political Economy, University of Chicago Press, vol. 131(11), pages 3186-3232.
    4. Elliot Lipnowski & Doron Ravid, 2020. "Cheap Talk With Transparent Motives," Econometrica, Econometric Society, vol. 88(4), pages 1631-1660, July.
    5. Elliot Lipnowski & Doron Ravid & Denis Shishkin, 2022. "Persuasion via Weak Institutions," Journal of Political Economy, University of Chicago Press, vol. 130(10), pages 2705-2730.
    6. Eduardo Perez-Richet, 2014. "Interim Bayesian Persuasion: First Steps," American Economic Review, American Economic Association, vol. 104(5), pages 469-474, May.
    7. Anton Kolotilin & Roberto Corrao & Alexander Wolitzky, 2023. "Persuasion and Matching: Optimal Productive Transport," Papers 2311.02889, arXiv.org.
    8. Elliot Lipnowski & Doron Ravid & Denis Shishkin, 2024. "Perfect Bayesian Persuasion," Papers 2402.06765, arXiv.org.
    9. Daehong Min, 2021. "Correction to: Bayesian persuasion under partial commitment," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 765-765, October.
    10. Daehong Min, 2021. "Bayesian persuasion under partial commitment," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 743-764, October.
    11. Roberto Corrao & Yifan Dai, 2023. "The Bounds of Mediated Communication," Papers 2303.06244, arXiv.org, revised Nov 2023.
    12. Kolotilin, Anton, 2018. "Optimal information disclosure: a linear programming approach," Theoretical Economics, Econometric Society, vol. 13(2), May.
    13. Elliott, M. & Galeotti, A. & Koh, A. & Li, W., 2023. "Matching and Information Design in Marketplaces," Cambridge Working Papers in Economics 2313, Faculty of Economics, University of Cambridge.
    14. 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.
    15. , & ,, 2006. "A study in the pragmatics of persuasion: a game theoretical approach," Theoretical Economics, Econometric Society, vol. 1(4), pages 395-410, December.
    16. Elliott, M. & Galeotti, A. & Koh, A. & Li, W., 2023. "Matching and Information Design in Marketplaces," Janeway Institute Working Papers 2304, Faculty of Economics, University of Cambridge.
    17. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
    18. Vasiliki Skreta, 2006. "Sequentially Optimal Mechanisms -super-1," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(4), pages 1085-1111.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emir Kamenica & Xiao Lin, 2024. "Commitment and Randomization in Communication," Papers 2410.17503, arXiv.org.
    2. Andriy Zapechelnyuk, 2023. "On the equivalence of information design by uninformed and informed principals," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1051-1067, November.
    3. 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.
    4. Ayouni, Mehdi & Friehe, Tim & Gabuthy, Yannick, 2024. "Bayesian persuasion in lawyer–client communication," International Review of Law and Economics, Elsevier, vol. 78(C).
    5. Zhou, Junya, 2023. "Costly verification and commitment in persuasion," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 1100-1142.
    6. Monte, Daniel & Linhares, Luis Henrique, 2023. "Stealth Startups, Clauses, and Add-ons: A Model of Strategic Obfuscation," MPRA Paper 115926, University Library of Munich, Germany.
    7. Laura Doval & Vasiliki Skreta, 2022. "Mechanism Design With Limited Commitment," Econometrica, Econometric Society, vol. 90(4), pages 1463-1500, July.
    8. Smolin, Alex & Doval, Laura, 2021. "Information Payoffs: An Interim Perspective," TSE Working Papers 21-1247, Toulouse School of Economics (TSE).
    9. Laura Doval & Alex Smolin, 2024. "Persuasion and Welfare," Journal of Political Economy, University of Chicago Press, vol. 132(7), pages 2451-2487.
    10. Ricardo Alonso & Odilon Câmara, 2024. "Organizing Data Analytics," Management Science, INFORMS, vol. 70(5), pages 3123-3143, May.
    11. Skreta, Vasiliki & Doval, Laura, 2021. "Purchase history and product personalization," CEPR Discussion Papers 15969, C.E.P.R. Discussion Papers.
    12. Kun Zhang, 2022. "Withholding Verifiable Information," Papers 2206.09918, arXiv.org, revised Sep 2022.
    13. Hedlund, Jonas, 2017. "Bayesian persuasion by a privately informed sender," Journal of Economic Theory, Elsevier, vol. 167(C), pages 229-268.
    14. Burdea, Valeria & Montero, Maria & Sefton, Martin, 2023. "Communication with partially verifiable information: An experiment," Games and Economic Behavior, Elsevier, vol. 142(C), pages 113-149.
    15. Elias Tsakas & Nikolas Tsakas & Dimitrios Xefteris, 2021. "Resisting persuasion," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 723-742, October.
    16. Doval, Laura & Skreta, Vasiliki, 2024. "Optimal mechanism for the sale of a durable good," Theoretical Economics, Econometric Society, vol. 19(2), May.
    17. Ivanov, Maxim & Sam, Alex, 2022. "Cheap talk with private signal structures," Games and Economic Behavior, Elsevier, vol. 132(C), pages 288-304.
    18. Eilat, Ran & Neeman, Zvika, 2023. "Communication with endogenous deception costs," Journal of Economic Theory, Elsevier, vol. 207(C).
    19. Maxim Ivanov, 2024. "Perfect robust implementation by private information design," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 78(3), pages 753-787, November.
    20. Kuvalekar, Aditya & Lipnowski, Elliot & Ramos, João, 2022. "Goodwill in communication," Journal of Economic Theory, Elsevier, vol. 203(C).

    More about this item

    Keywords

    Bayesian persuasion; cheap talk;

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pen:papers:24-033. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Administrator (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.