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SSRN Electronic Journal
Article . 2020 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2022 . Peer-reviewed
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https://dx.doi.org/10.48550/ar...
Article . 2019
License: arXiv Non-Exclusive Distribution
Data sources: Datacite
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Persuasion with Limited Signal Spaces

Authors: Yunus C. Aybas; Eray Turkel;

Persuasion with Limited Signal Spaces

Abstract

In many real-world scenarios, experts must convey complex information with limited message capacity. This paper explores how the availability of messages influences an expert's persuasive ability. We develop a geometric representation of the expert's payoff with limited message capacity and identify bounds on the value of an additional signal for the sender. In a special class of games, the marginal value of a signal increases as the receiver becomes more difficult to persuade. Moreover, we show that access to an additional signal does not necessarily translate into more information transmitted in equilibrium, and the receiver might prefer coarser communication. This suggests that regulations on communication capacity have the potential to shift the balance of power from the expert to the decision-maker, ultimately improving welfare. Finally, we study the geometric properties of optimal information structures and show that the complexity of the sender's problem can be simplified to a finite algorithm.

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Keywords

FOS: Economics and business, Economics - Theoretical Economics, Theoretical Economics (econ.TH)

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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green