Optimal information disclosure: a linear programming approach

Anton Kolotilin

Theoretical Economics, 2018, vol. 13, issue 2

Abstract: An uninformed sender designs a mechanism that discloses information about her type to a privately informed receiver, who then decides whether to act. I impose a single-crossing assumption, so that the receiver with a higher type is more willing to act. Using a linear programming approach, I characterize optimal information disclosure and provide conditions under which full and no revelation are optimal. Assuming further that the sender's utility depends only on the sender's expected type, I provide conditions under which interval revelation is optimal. Finally, I show that the expected utilities are not monotonic in the precision of the receiver's private information.

Keywords: Bayesian persuasion; information design; information disclosure; informed receiver (search for similar items in EconPapers)
JEL-codes: C72 D82 D83 (search for similar items in EconPapers)
Date: 2018-05-29
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Citations: View citations in EconPapers (104)

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