Persuading skeptics and reaffirming believers

Alonso, Ricardo 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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Abstract

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:	http://www.marshall.usc.edu/
Additional Information:	© 2014 The Authors, USC Marshall School of Business
Library of Congress subject classification:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HE Transportation and Communications
Journal of Economic Literature Classification System:	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
Sets:	Departments > Management Research centres and groups > Managerial Economics and Strategy Group
Date Deposited:	05 Aug 2014 15:45
URL:	http://eprints.lse.ac.uk/58680/

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