Endogenous Persuasion with Costly Verification

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2019
Volume: 121
Issue: 3
Pages: 1054-1087

Authors (1)

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

In this paper, I study a situation in which a sender tries to persuade a receiver with evidence that is generated via public or private experimentation. Under public experimentation, any experimental outcome is revealed, and under private experimentation the sender can hide adverse outcomes. The sender can design the properties of the experiments. The receiver chooses whether to verify at a cost the design of the experiment with which the revealed outcome was generated. I find that communication breaks down under public experimentation if there is no restriction on the experiment's design, and that persuasion is possible under private experimentation.

Technical Details

RePEc Handle
repec:bla:scandj:v:121:y:2019:i:3:p:1054-1087
Journal Field
General
Author Count
1
Added to Database
2026-01-25