Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2025

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Persuasion with Ambiguous Communication

Xiaoyu Cheng, Peter Klibanoff*, Sujoy Mukerji, Ludovic Renou

Building: HEC Montréal - Édifice Hélène-Desmarais
Room: HEC
Date: 2025-05-03 10:30 am – 11:00 am
Last modified: 2025-04-19

Abstract


<div>This paper explores whether and to what extent ambiguous communication can</div><div>be beneficial to the sender in a persuasion problem, when the receiver (and possibly the sender) is ambiguity averse. We provide a concavification-like characterization of the sender’s optimal ambiguous communication. The characterization highlights the necessity of using a collection of experiments that form a splitting of an obedient (i.e., incentive compatible) experiment. Some experiments in the collection must be Pareto-ranked in the sense that both players agree on their payoff ranking. The existence of a binary such Pareto-ranked splitting is necessary for ambiguous communication to benefit the sender, and, if an optimal Bayesian persuasion experiment can be split in this way, this is sufficient for an ambiguity-neutral sender as well as the receiver to benefit. Such gains are impossible when the receiver has only two actions. The possibility of gains is substantially robust to (non-extreme) sender ambiguity aversion.</div>

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