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  3. American Economic Review
  4. May 2016
  5. A Rothschild-Stiglitz Approach to Bayesian Persuasion

A Rothschild-Stiglitz Approach to Bayesian Persuasion

  • Matthew Gentzkow
  • Emir Kamenica
American Economic Review
vol. 106, no. 5, May 2016
(pp. 597-601)
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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.p20161049

Additional Materials

JEL Classification

  • D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness