Optimal persuasion via bi-pooling

Itai Arieli (), Yakov Babichenko (), Rann Smorodinsky () and Takuro Yamashita
Additional contact information
Itai Arieli: Technion–Israel Institute of Technology
Yakov Babichenko: Technion–Israel Institute of Technology
Rann Smorodinsky: Technion–Israel Institute of Technology

Theoretical Economics, 2023, vol. 18, issue 1

Abstract: Mean-preserving contractions are critical for studying Bayesian models of information design. We introduce the class of bi-pooling policies, and the class of bi-pooling distributions as their induced distributions over posteriors. We show that every extreme point in the set of all mean-preserving contractions of any given prior over an interval takes the form of a bi-pooling distribution. By implication, every Bayesian persuasion problem with an interval state-space admits an optimal bi-pooling distribution as a solution, and conversely, for every bi-pooling distribution, there is a Bayesian persuasion problem for which that distribution is the unique solution

Keywords: Bayesian persuasion; mean preserving contraction; bi-pooling; information disclosure; price function; signaling; extreme points (search for similar items in EconPapers)
JEL-codes: C72 D82 D83 (search for similar items in EconPapers)
Date: 2023-01-18
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20230015/35722/1054 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:4663

Access Statistics for this article

Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill

More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Martin J. Osborne ().