Bayesian Persuasion with Private Information
37 Pages Posted: 31 Aug 2018
Date Written: February 5, 2018
We study a model of communication and Bayesian persuasion between a sender who is privately informed and has state independent preferences, and a receiver who has preferences that depend on the unknown state. In a model with two states of the world, over the interesting range of parameters, the equilibria can be pooling or separating, but a particular novel refinement forces the pooling to be on the most informative information structure in all but one case. We also study two extensions - a model with more information structures as well as a model where the state of the world is non-dichotomous, and show that analogous results emerge.
Keywords: persuasion, communication, information provision, information design
JEL Classification: D82, D83, C72
Suggested Citation: Suggested Citation