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arXiv · 2209.06536

Markovian Persuasion with Two States

Galit Ashkenazi-Golan·Penélope Hernández·Zvika Neeman·Eilon Solan
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Abstract

This paper addresses the question of how to best communicate information over time in order to influence an agent's belief and induced actions in a model with a binary state of the world that evolves according to a Markov process, and with a finite number of actions. We characterize the sender's optimal message strategy in the limit, as the length of each period decreases to zero. The optimal strategy is not myopic. Depending on the agent's beliefs, sometimes no information is revealed, and sometimes the agent's belief is split into two well-chosen posterior beliefs.

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Galit Ashkenazi-Golan, Penélope Hernández, Zvika Neeman, Eilon Solan. 2022-09-14. Markovian Persuasion with Two States. https://arxiv.org/abs/2209.06536

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