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Pitfalls of Information Spillovers in Persuasion

Author

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  • Toygar T. Kerman
  • Anastas P. Tenev

Abstract

We study a multiple-receiver Bayesian persuasion model in which the sender wants to achieve an outcome and commits to an experiment which sends correlated messages to homogeneous receivers. Receivers are connected in a network and can perfectly observe their immediate neighbors’ messages. After updating their beliefs, receivers choose an action to match the true state of the world. Surprisingly, the sender’s gain from persuasion does not change monotonically with network density. We characterize a class of networks in which increased communication among the receivers is strictly better for the sender and hence strictly worse for the receivers.

Suggested Citation

  • Toygar T. Kerman & Anastas P. Tenev, 2024. "Pitfalls of Information Spillovers in Persuasion," CERGE-EI Working Papers wp772, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp772
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Bayesian Persuasion; Networks; Critical Mass; Voting;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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