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Bayesian Persuasion With Private Experimentation

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  • Mike Felgenhauer
  • Petra Loerke

Abstract

This article studies a situation in which a sender tries to persuade a receiver by providing hard evidence that is generated by sequential private experimentation where the sender can design the properties of each experiment contingent on the experimentation history. The sender can selectively reveal as many outcomes as desired. We determine the set of equilibria that are not Pareto‐dominated. In each of these equilibria under private experimentation, the persuasion probability is lower and the receiver obtains access to higher quality information than under public experimentation. The decision quality improves in the sender's stakes.

Suggested Citation

  • Mike Felgenhauer & Petra Loerke, 2017. "Bayesian Persuasion With Private Experimentation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(3), pages 829-856, August.
    • Handle: RePEc:wly:iecrev:v:58:y:2017:i:3:p:829-856
    DOI: 10.1111/iere.12237
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Herresthal, C., 2017. "Hidden Testing and Selective Disclosure of Evidence," Cambridge Working Papers in Economics 1712, Faculty of Economics, University of Cambridge.
    2. Jonas Hedlund & T. Florian Kauffeldt & Malte Lammert, 2021. "Persuasion under ambiguity," Theory and Decision, Springer, vol. 90(3), pages 455-482, May.
    3. Felgenhauer, Mike & Xu, Fangya, 2019. "State of the debate contingent arguments," Economics Letters, Elsevier, vol. 179(C), pages 46-48.
    4. Yichuan Lou, 2023. "Private Experimentation, Data Truncation, and Verifiable Disclosure," Papers 2305.04231, arXiv.org.
    5. Mike Felgenhauer & Fangya Xu, 2021. "The Face Value Of Arguments With And Without Manipulation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(1), pages 277-293, February.
    6. Wu, Wenhao, 2023. "Sequential Bayesian persuasion," Journal of Economic Theory, Elsevier, vol. 214(C).
    7. Felgenhauer, Mike, 2021. "Experimentation and manipulation with preregistration," Games and Economic Behavior, Elsevier, vol. 130(C), pages 400-408.
    8. Vasudha Jain & Mark Whitmeyer, 2021. "Whose Bias?," Papers 2111.10335, arXiv.org.
    9. Federico Echenique & Kevin He, 2021. "Screening $p$-Hackers: Dissemination Noise as Bait," Papers 2103.09164, arXiv.org, revised Mar 2024.
    10. Herresthal, Claudia, 2022. "Hidden testing and selective disclosure of evidence," Journal of Economic Theory, Elsevier, vol. 200(C).

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