Robust persuasion of a privately informed receiver

Ju Hu () and Xi Weng
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Ju Hu: Peking University

Economic Theory, 2021, vol. 72, issue 3, No 10, 909-953

Abstract: Abstract This paper studies robust Bayesian persuasion of a privately informed receiver in a binary environment, where an ambiguity-averse sender with a maxmin expected utility function has limited knowledge about the receiver’s private information source. We develop a novel method to solve the sender’s information design problem. Our main result shows that the sender’s optimal information structure can be found within the class of linear-contingent-payoff information structures. We also fully characterize the sender’s optimal linear-contingent-payoff information structure and analyze the impact of ambiguity on the sender’s payoff.

Keywords: Bayesian persuasion; Ambiguity aversion; Maxmin utility; Private information; Robustness (search for similar items in EconPapers)
JEL-codes: D81 D82 D83 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (11)

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DOI: 10.1007/s00199-020-01299-5

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