Feasible Conditional Belief Distributions

Itai Arieli; Yakov Babichenko; Fedor Sandomirskiy

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arXiv · 2307.07672

Feasible Conditional Belief Distributions

Itai Arieli·Yakov Babichenko·Fedor Sandomirskiy

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Abstract

Agents receive private signals about an unknown state. The resulting joint belief distributions are complex and lack a simple characterization. Our key insight is that, when conditioned on the state, the structure of belief distributions simplifies: feasibility constrains only the marginal distributions of individual agents across states, with no joint constraints within a state. We apply this insight to multi-receiver persuasion, identifying new tractable cases and introducing optimal transportation and duality tools.

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econ.TH cs.GT

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Itai Arieli, Yakov Babichenko, Fedor Sandomirskiy. 2023-07-15. Feasible Conditional Belief Distributions. https://arxiv.org/abs/2307.07672

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