American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
A Rothschild-Stiglitz Approach to Bayesian Persuasion
American Economic Review
vol. 106,
no. 5, May 2016
(pp. 597–601)
Abstract
Rothschild and Stiglitz (1970) represent random variables as convex functions (integrals of the cumulative distribution function). Combining this representation with Blackwell's Theorem (1953), we characterize distributions of posterior means that can be induced by a signal. This characterization provides a novel way to analyze a class of Bayesian persuasion problems.Citation
Gentzkow, Matthew, and Emir Kamenica. 2016. "A Rothschild-Stiglitz Approach to Bayesian Persuasion." American Economic Review, 106 (5): 597–601. DOI: 10.1257/aer.p20161049Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness