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arXiv · 2402.06765

Perfect Bayesian Persuasion

Elliot Lipnowski·Doron Ravid·Denis Shishkin
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Abstract

A sender commits to an experiment to persuade a receiver. Accounting for the sender's experiment-choice incentives, and not presupposing a receiver tie-breaking rule when indifferent, we characterize when the sender's equilibrium payoff is unique and so coincides with her "Bayesian persuasion" value. A sufficient condition in finite models is that every action which is receiver-optimal at some belief is uniquely optimal at some other belief -- a generic property. We similarly show the equilibrium sender payoff is typically unique in ordered models. In an extension, we show uniqueness generates robustness to imperfect sender commitment.

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Elliot Lipnowski, Doron Ravid, Denis Shishkin. 2024-02-09. Perfect Bayesian Persuasion. https://arxiv.org/abs/2402.06765

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