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Journal of Economic Dynamics and Control
Article . 2025 . Peer-reviewed
License: Elsevier TDM
Data sources: Crossref
https://doi.org/10.2139/ssrn.4...
Article . 2024 . Peer-reviewed
Data sources: Crossref
https://dx.doi.org/10.48550/ar...
Article . 2024
License: CC BY
Data sources: Datacite
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Continuous-Time Persuasion by Filtering

Authors: René Aïd; Ofelia Bonesini; Giorgia Callegaro; Luciano Campi;

Continuous-Time Persuasion by Filtering

Abstract

We frame dynamic persuasion in a partial observation stochastic control Leader-Follower game with an ergodic criterion. The Receiver controls the dynamics of a multidimensional unobserved state process. Information is provided to the Receiver through a device designed by the Sender that generates the observation process. The commitment of the Sender is enforced. We develop this approach in the case where all dynamics are linear and the preferences of the Receiver are linear-quadratic. We prove a verification theorem for the existence and uniqueness of the solution of the HJB equation satisfied by the Receiver's value function. An extension to the case of persuasion of a mean field of interacting Receivers is also provided. We illustrate this approach in two applications: the provision of information to electricity consumers with a smart meter designed by an electricity producer; the information provided by carbon footprint accounting rules to companies engaged in a best-in-class emissions reduction effort. In the first application, we link the benefits of information provision to the mispricing of electricity production. In the latter, we show that information provision is a substitute for best-in-class objective.

2 figures

Countries
France, Italy
Keywords

persuasion, Probability (math.PR), mean field games, smart meters, 91B76, [MATH] Mathematics [math], filtering, 91A15, 91A16, Stackelberg games, [QFIN] Quantitative Finance [q-fin], Q51. MSC 2020 classification: 93E11, D82, ergodic control, D83, C73, Optimization and Control (math.OC), Optimization and Control, carbon footprint. JEL classification: C61, FOS: Mathematics, persuasion; filtering; ergodic control; Stackelberg games; mean field games; smart meters; carbon footprint, Probability

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selected citations
These citations are derived from selected sources.
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!
1
Average
Average
Average
Green