Persuasion with unknown beliefs Article Swipe
YOU?
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· 2022
· Open Access
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· DOI: https://doi.org/10.3982/te4742
· OA: W4285250804
A sender designs an information structure to persuade a receiver to take an action. The sender is ignorant about the receiver's prior, and evaluates each information structure using the receiver's prior that is the worst for the sender. I characterize the optimal information structures in this environment. I show that there exists an optimal signal with two realizations, characterize the support of the signal realization recommending approval,, and show that the optimal signal is a hyperbola. The lack of knowledge of the receiver's prior causes the sender to hedge her bets: the optimal signal induces the high action in more states than in the standard model, albeit with a lower probability. Increasing the sender's ignorance can hurt both the sender and the receiver.
