Learning More by Doing Less: Capacity and Competition in Bayesian Persuasion
51 Pages Posted: 5 Jun 2013
Date Written: February 19, 2013
Self-interested agents produce information in an attempt to convince a principal to act on their behalf. Agents provide less informative evidence than the principal prefers since doing so maximizes the probability the principal acts in their favor. If the principal faces constraints that limit the number of agents whose proposals she can support, then agents produce more-accurate evidence as they compete for priority. Under reasonable conditions, the principal is better off when her capacity to act is limited.
Keywords: strategic search, evidence production, persuasion, lobbying
JEL Classification: D72, D78, D83, L15
Suggested Citation: Suggested Citation