Keeping the Listener Engaged: a Dynamic Model of Bayesian Persuasion
Theoretical Economics
2022-10-03 v5
Abstract
We consider a dynamic model of Bayesian persuasion in which information takes time and is costly for the sender to generate and for the receiver to process, and neither player can commit to their future actions. Persuasion may totally collapse in a Markov perfect equilibrium (MPE) of this game. However, for persuasion costs sufficiently small, a version of a folk theorem holds: outcomes that approximate Kamenica and Gentzkow (2011)'s sender-optimal persuasion as well as full revelation and everything in between are obtained in MPE, as the cost vanishes.
Keywords
Cite
@article{arxiv.2003.07338,
title = {Keeping the Listener Engaged: a Dynamic Model of Bayesian Persuasion},
author = {Yeon-Koo Che and Kyungmin Kim and Konrad Mierendorff},
journal= {arXiv preprint arXiv:2003.07338},
year = {2022}
}