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Persuading skeptics and reaffirming believers

Alonso, Ricardo ORCID: 0000-0001-9559-0864 and Câmara, Odilon (2014) Persuading skeptics and reaffirming believers. USC Marshall School of Business Research Paper Series. University of Southern California, Marshall School of Business, Los Angeles, CA, USA.

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In a world where rational individuals may hold different prior beliefs, a sender can influence the behavior of a receiver by controlling the informativeness of a signal. We characterize the set of distributions of posterior beliefs that can be induced by a signal, and provide necessary and sufficient conditions for a sender to benefit from information control. We examine a class of models with no value of information control under common priors, and show that a sender generically benefits from information control under heterogeneous priors. We extend our analysis to cases where the receiver’s prior is unknown to the sender.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2014 The Authors, USC Marshall School of Business
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HE Transportation and Communications
JEL classification: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legislatures, and Voting Behavior
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
M - Business Administration and Business Economics; Marketing; Accounting > M3 - Marketing and Advertising > M31 - Marketing
Date Deposited: 05 Aug 2014 15:45
Last Modified: 16 May 2024 12:03

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