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STICERD Economic Theory Seminars & STICERD Economic Theory Seminars

Conjugate Persuasion

Daniel Quigley (University of Oxford), joint with Ian Jewitt

Thursday 14 October 2021 15:30 - 17:00

Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, in-person seminars are open to the public.

Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.


About this event

We consider a class of persuasion games in which the sender has rank-dependent preferences. Like much of the recent Bayesian persuasion literature, we assume the receiver’s action depends only on her posterior expectation of a scalar state variable, and the sender may commit to a choice of experiment from a rich set (including, but not limited to, partitions). We consider settings in which the sender’s utility may be nonlinear in probabilities: this nonlinearity generates rank-dependent interests. The sender’s payoffs are otherwise linear in actions. In this environment, we geometrically characterize the sender’s optimal payoff from any information structure and identify the corresponding optimal experiment. For any prior distribution on a bounded support, we find that the sender’s optimal experiment must be monotone partitional. Moreover, our characterization admits a relatively simple analysis of comparative statics. We apply our analysis to several problems of economic interest: information design in auctions and elections, persuasion of an attention-constrained principal, and the design of investment projects when investors suffer from the `favourite-longshot’ bias.

Economic Theory Seminars are held on Thursdays in term time at 15:30-17:00, both ONLINE and IN PERSON in SAL 3.05.

Seminar organisers: Dr Andrew Ellis and Dr Christopher Sandmann.

For further information please contact Sadia Ali: s.ali43@lse.ac.uk.

Please use this link to subscribe or unsubscribe to the Economic Theory seminars mailing list (etheory).

Economic Theory Seminars are held on Thursdays in term time at 15:30-17:00, both ONLINE and IN PERSON in SAL 3.05.

Seminar organisers: Dr Andrew Ellis and Dr Christopher Sandmann.

For further information please contact Sadia Ali: s.ali43@lse.ac.uk.

Please use this link to subscribe or unsubscribe to the Economic Theory seminars mailing list (etheory).