Persuasion with limited communication capacity

A-Tier
Journal: Journal of Economic Theory
Year: 2019
Volume: 184
Issue: C

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a Bayesian persuasion problem where the persuader and the decision maker communicate through an imperfect channel that has a fixed and limited number of messages and is subject to exogenous noise. We provide an upper bound on the payoffs the persuader can secure by communicating through the channel. We also show that the bound is tight, i.e., if the persuasion problem consists of a large number of independent copies of the same base problem, then the persuader can achieve this bound arbitrarily closely by using strategies that tie all the problems together. We characterize this optimal payoff as a function of the information-theoretic capacity of the communication channel.

Technical Details

RePEc Handle
repec:eee:jetheo:v:184:y:2019:i:c:s0022053118305064
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29