Persuasion with limited communication capacity

Maël Le Treust and Tristan Tomala

Journal of Economic Theory, 2019, vol. 184, issue C

Abstract: We consider a Bayesian persuasion problem where the persuader and the decision maker communicate through an imperfect channel that has a fixed and limited number of messages and is subject to exogenous noise. We provide an upper bound on the payoffs the persuader can secure by communicating through the channel. We also show that the bound is tight, i.e., if the persuasion problem consists of a large number of independent copies of the same base problem, then the persuader can achieve this bound arbitrarily closely by using strategies that tie all the problems together. We characterize this optimal payoff as a function of the information-theoretic capacity of the communication channel.

Keywords: Bayesian persuasion; Communication channel; Mutual information (search for similar items in EconPapers)
JEL-codes: C72 D82 D83 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Working Paper: Persuasion with Limited Communication Capacity (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:184:y:2019:i:c:s0022053118305064

DOI: 10.1016/j.jet.2019.104940

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