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Persuasion and dynamic communication

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    (Department of Economics, University of Minnesota)

Abstract

A speaker attempts to persuade a listener to accept a request by presenting evidence. A persuasion rule specifies what evidence is persuasive. This paper compares static and dynamic rules. We present a single linear program (i) whose solution corresponds to the listener's optimal dynamic rule and (ii) whose solution with additional integer constraints corresponds to the optimal static rule. We present a condition--foresight--under which the optimal persuasion problem reduces to the classical maximum flow problem. This has various qualitative consequences, including the coincidence of optimal dynamic and static persuasion rules, elimination of the need for randomization, and symmetry of optimal static rules.

Suggested Citation

  • ,, 2014. "Persuasion and dynamic communication," Theoretical Economics, Econometric Society, vol. 9(1), January.
    • Handle: RePEc:the:publsh:683
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sebastian Schweighofer-Kodritsch & Roland Strausz, 2023. "Principled Mechanism Design with Evidence," Berlin School of Economics Discussion Papers 0030, Berlin School of Economics.
    2. Sher, Itai & Vohra, Rakesh, 2015. "Price discrimination through communication," Theoretical Economics, Econometric Society, vol. 10(2), May.
    3. , & ,, 2012. "Implementation with evidence," Theoretical Economics, Econometric Society, vol. 7(2), May.
    4. Sher, Itai, 2011. "Credibility and determinism in a game of persuasion," Games and Economic Behavior, Elsevier, vol. 71(2), pages 409-419, March.
    5. Frédéric Koessler & Eduardo Perez-Richet, 2019. "Evidence reading mechanisms," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(3), pages 375-397, October.
    6. Matthias Lang, 2020. "Mechanism Design with Narratives," CESifo Working Paper Series 8502, CESifo.
    7. repec:hal:pseose:halshs-00754592 is not listed on IDEAS
    8. Strausz, Roland, 2017. "Mechanism Design with Partially Verifiable Information," Rationality and Competition Discussion Paper Series 45, CRC TRR 190 Rationality and Competition.
    9. Ying Chen & Wojciech Olszewski, 2014. "Effective Persuasion," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(2), pages 319-347, May.

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    More about this item

    Keywords

    Communication; optimal persuasion rules; credibility; commitment; evidence; maximum flow problem;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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