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Persuasive Talk, Delegation, And Announcements, Paan Jindapon, Carlos Oyarzun

Paan Jindapon

We study persuasion in a modified Crawford-Sobel sender-receiver game in which the receiver makes a binary decision to accept or reject a good recommended by the sender. The good's quality and the sender's type (neutral or biased) are not observable to the receiver. These alterations yield a simple model and a unique truth-telling equilibrium in which neutral senders who observe different qualities fully separate. In such an equilibrium, neutral senders can only communicate low quality levels with precision and biased senders adopt a mixed strategy that can successfully persuade the receiver to accept the good most of the time. Several …