IDEAS home Printed from https://ideas.repec.org/p/bon/boncrc/crctr224_2024_564.html
   My bibliography  Save this paper

The Comparative Statics of Persuasion

Author

Listed:
  • Gregorio Curello
  • Ludvig Sinander

Abstract

In the canonical persuasion model, comparative statics has been an open question. We answer it, delineating which shifts of the sender's interim payoff lead her optimally to choose a more informative signal. Our first theorem identifies a coarse notion of 'increased convexity' that we show characterises those shifts of the senders interim payoff that lead her optimally to choose no less informative signals. To strengthen this conclusion to 'more informative' requires further assumptions: our second theorem identifies the necessary and sufficient condition on the sender's interim payoff, which strictly generalises the 'S' shape commonly imposed in the literature. We identify conditions under which increased alignment of interests between sender and receiver lead to comparative statics, and study a number of applications.

Suggested Citation

  • Gregorio Curello & Ludvig Sinander, 2024. "The Comparative Statics of Persuasion," CRC TR 224 Discussion Paper Series crctr224_2024_564, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2024_564
    as

    Download full text from publisher

    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp564
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John K.-H. Quah & Bruno Strulovici, 2009. "Comparative Statics, Informativeness, and the Interval Dominance Order," Econometrica, Econometric Society, vol. 77(6), pages 1949-1992, November.
    2. Ludvig Sinander, 2019. "The converse envelope theorem," Papers 1909.11219, arXiv.org, revised Jun 2022.
    3. Ludvig Sinander, 2022. "The Converse Envelope Theorem," Econometrica, Econometric Society, vol. 90(6), pages 2795-2819, November.
    4. Doron Ravid & Anne-Katrin Roesler & Balázs Szentes, 2022. "Learning before Trading: On the Inefficiency of Ignoring Free Information," Journal of Political Economy, University of Chicago Press, vol. 130(2), pages 346-387.
    5. Yeon-Koo Che & Jinwoo Kim & Fuhito Kojima, 2019. "Weak Monotone Comparative Statics," Papers 1911.06442, arXiv.org, revised Nov 2021.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark Whitmeyer, 2022. "Making Information More Valuable," Papers 2210.04418, arXiv.org, revised Jun 2024.
    2. Rahman, David M., 2024. "Detecting profitable deviations," Journal of Mathematical Economics, Elsevier, vol. 111(C).
    3. Gregorio Curello & Ludvig Sinander, 2022. "The comparative statics of persuasion," Papers 2204.07474, arXiv.org, revised May 2024.
    4. Tarun Sabarwal, 2023. "General theory of equilibrium in models with complementarities," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202307, University of Kansas, Department of Economics, revised Sep 2023.
    5. Marina Halac & Ilan Kremer, 2020. "Experimenting with Career Concerns," American Economic Journal: Microeconomics, American Economic Association, vol. 12(1), pages 260-288, February.
    6. Julián Enrique Chitiva Bocanegra, 2019. "Implementable Mechanisms for discrete utility functions, a solution using Tropical Geometry," Documentos CEDE 17485, Universidad de los Andes, Facultad de Economía, CEDE.
    7. Quitz'e Valenzuela-Stookey, 2020. "Platform-Mediated Competition," Papers 2011.03879, arXiv.org.
    8. Daniel Krähmer, 2024. "The Hold-Up Problem with Flexible Unobservable Investments," ECONtribute Discussion Papers Series 278, University of Bonn and University of Cologne, Germany.
    9. Yeon-Koo Che & Jinwoo Kim & Fuhito Kojima, 2019. "Weak Monotone Comparative Statics," Papers 1911.06442, arXiv.org, revised Nov 2021.
    10. Bartosz Maćkowiak & Filip Matějka & Mirko Wiederholt, 2023. "Rational Inattention: A Review," Journal of Economic Literature, American Economic Association, vol. 61(1), pages 226-273, March.
    11. Bíró, Anikó & Prinz, Dániel & Sándor, László, 2022. "The minimum wage, informal pay, and tax enforcement," Journal of Public Economics, Elsevier, vol. 215(C).
    12. Han, Seungjin & Sam, Alex & Shin, Youngki, 2024. "Monotone equilibrium in matching markets with signaling," Journal of Economic Theory, Elsevier, vol. 216(C).
    13. Brian C. Albrecht & Mark Whitmeyer, 2023. "Comparison Shopping: Learning Before Buying From Duopolists," Papers 2302.06580, arXiv.org, revised Apr 2023.
    14. Kim, Yonggyun, 2023. "Comparing information in general monotone decision problems," Journal of Economic Theory, Elsevier, vol. 211(C).
    15. Hernandez-Chanto, Allan & Fioriti, Andres, 2019. "Bidding securities in projects with negative externalities," European Economic Review, Elsevier, vol. 118(C), pages 14-36.
    16. Nikolai Kukushkin, 2015. "The single crossing conditions for incomplete preferences," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(1), pages 225-251, February.
    17. Tommaso Denti & Doron Ravid, 2023. "Robust Predictions in Games with Rational Inattention," Papers 2306.09964, arXiv.org.
    18. Barthel, Anne-Christine & Hoffmann, Eric, 2017. "Comparing optimal choices with multi-dimensional action spaces," Journal of Mathematical Economics, Elsevier, vol. 70(C), pages 45-50.
    19. Prokopovych, Pavlo & Yannelis, Nicholas C., 2017. "On strategic complementarities in discontinuous games with totally ordered strategies," Journal of Mathematical Economics, Elsevier, vol. 70(C), pages 147-153.
    20. Natalia Lazzati, 2013. "Comparison of equilibrium actions and payoffs across players in games of strategic complements," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 777-788, November.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:bon:boncrc:crctr224_2024_564. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: CRC Office (email available below). General contact details of provider: https://www.crctr224.de .

    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.