Economics > Theoretical Economics
arXiv:2310.10024 (econ)
[Submitted on 16 Oct 2023]
Title:Managing Persuasion Robustly: The Optimality of Quota Rules
View a PDF of the paper titled Managing Persuasion Robustly: The Optimality of Quota Rules, by Dirk Bergemann and 2 other authors
View PDFAbstract:We study a sender-receiver model where the receiver can commit to a decision rule before the sender determines the information policy. The decision rule can depend on the signal structure and the signal realization that the sender adopts. This framework captures applications where a decision-maker (the receiver) solicit advice from an interested party (sender). In these applications, the receiver faces uncertainty regarding the sender's preferences and the set of feasible signal structures. Consequently, we adopt a unified robust analysis framework that includes max-min utility, min-max regret, and min-max approximation ratio as special cases. We show that it is optimal for the receiver to sacrifice ex-post optimality to perfectly align the sender's incentive. The optimal decision rule is a quota rule, i.e., the decision rule maximizes the receiver's ex-ante payoff subject to the constraint that the marginal distribution over actions adheres to a consistent quota, regardless of the sender's chosen signal structure.
| Subjects: | Theoretical Economics (econ.TH); Computer Science and Game Theory (cs.GT) |
| Cite as: | arXiv:2310.10024 [econ.TH] |
| (orarXiv:2310.10024v1 [econ.TH] for this version) | |
| https://doi.org/10.48550/arXiv.2310.10024 arXiv-issued DOI via DataCite |
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View a PDF of the paper titled Managing Persuasion Robustly: The Optimality of Quota Rules, by Dirk Bergemann and 2 other authors
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