Persuasion with ambiguous receiver preferences
Eitan Sapiro-Gheiler ()
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Eitan Sapiro-Gheiler: MIT
Economic Theory, 2024, vol. 77, issue 4, No 9, 1173-1218
Abstract:
Abstract I describe a Bayesian persuasion problem where Receiver has a private type representing a cutoff for choosing Sender’s preferred action, and Sender has maxmin preferences over all Receiver type distributions with known mean and bounds. This problem can be represented as a zero-sum game where Sender chooses a distribution of posterior mean beliefs that is a mean-preserving contraction of the prior over states, and an adversarial Nature chooses a Receiver type distribution with the known mean; the player with the higher realization from their chosen distribution wins. I formalize the connection between maxmin persuasion and similar games used to model political spending, all-pay auctions, and competitive persuasion. In both a standard binary-state setting and a new continuous-state setting, Sender optimally linearizes the prior distribution over states to create a distribution of posterior means that is uniform on a known interval with an atom at the lower bound of its support.
Keywords: Bayesian persuasion; Maxmin utility; Mean-preserving contraction (search for similar items in EconPapers)
JEL-codes: D81 D82 D83 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s00199-023-01522-z
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