Persuasion via Weak Institutions
Elliot Lipnowski,
Doron Ravid and
Denis Shishkin
Journal of Political Economy, 2022, vol. 130, issue 10, 2705 - 2730
Abstract:
A sender commissions a study to persuade a receiver but influences the report with some probability. We show that increasing this probability can benefit the receiver and can lead to a discontinuous drop in the sender’s payoffs. To derive our results, we geometrically characterize the sender’s highest equilibrium payoff, which is based on the concavification of a capped value function.
Date: 2022
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