IDEAS home Printed from https://ideas.repec.org/a/wly/emetrp/v87y2019i2p653-675.html
   My bibliography  Save this article

The Interval Structure of Optimal Disclosure

Author

Listed:
  • Yingni Guo
  • Eran Shmaya

Abstract

A sender persuades a receiver to accept a project by disclosing information about a payoff‐relevant quality. The receiver has private information about the quality, referred to as his type. We show that the sender‐optimal mechanism takes the form of nested intervals: each type accepts on an interval of qualities and a more optimistic type's interval contains a less optimistic type's interval. This nested‐interval structure offers a simple algorithm to solve for the optimal disclosure and connects our problem to the monopoly screening problem. The mechanism is optimal even if the sender conditions the disclosure mechanism on the receiver's reported type.

Suggested Citation

  • Yingni Guo & Eran Shmaya, 2019. "The Interval Structure of Optimal Disclosure," Econometrica, Econometric Society, vol. 87(2), pages 653-675, March.
    • Handle: RePEc:wly:emetrp:v:87:y:2019:i:2:p:653-675
    DOI: 10.3982/ECTA15668
    as

    Download full text from publisher

    File URL: https://doi.org/10.3982/ECTA15668
    Download Restriction: no
    File URL: https://libkey.io/10.3982/ECTA15668?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:emetrp:v:87:y:2019:i:2:p:653-675. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.