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Bayesian Persuasion

  • Paper
  • #Economics
Emir Kamenica
@EmirKamenica
(Author)
Matthew Gentzkow
@MatthewGentzkow
(Author)
www.nber.org
Read on www.nber.org
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When is it possible for one person to persuade another to change her action? We take a mechanism design approach to this question. Taking preferences and initial beliefs as given, w... Show More

When is it possible for one person to persuade another to change her action? We take a mechanism design approach to this question. Taking preferences and initial beliefs as given, we introduce the notion of a persuasion mechanism: a game between Sender and Receiver defined by an information structure and a message technology. We derive necessary and sufficient conditions for the existence of a persuasion mechanism that strictly benefits Sender. We characterize the optimal mechanism. Finally, we analyze several examples that illustrate the applicability of our results.

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Daniel (bayesian gaysian) @danielluo_pi · Nov 2, 2022
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