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Bayesian Persuasion with Mediators

Author

Listed:
  • Itai Arieli
  • Yakov Babichenko
  • Fedor Sandomirskiy

Abstract

An informed sender communicates with an uninformed receiver through a sequence of uninformed mediators; agents' utilities depend on receiver's action and the state. For any number of mediators, the sender's optimal value is characterized. For one mediator, the characterization has a geometric meaning of constrained concavification of sender's utility, optimal persuasion requires the same number of signals as without mediators, and the presence of the mediator is never profitable for the sender. Surprisingly, the second mediator may improve the value but optimal persuasion may require more signals.

Suggested Citation

  • Itai Arieli & Yakov Babichenko & Fedor Sandomirskiy, 2022. "Bayesian Persuasion with Mediators," Papers 2203.04285, arXiv.org, revised Sep 2022.
    • Handle: RePEc:arx:papers:2203.04285
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    References listed on IDEAS

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