Persuasion with endogenous misspecified beliefs
Eliaz, K., Spiegler, R. & Thysen, H. C.
(2021).
Persuasion with endogenous misspecified beliefs.
European Economic Review,
134,
https://doi.org/10.1016/j.euroecorev.2021.103712
We study a two-action, two-state pure persuasion game in which the receiver has non-rational expectations. The sender can add ambiguity to his message by pooling it with other messages. This can be likened to selective redaction of the original message. The receiver knows the sender's message strategy but not his redaction strategy, and uses only the former to draw inferences from the redacted message. We characterize the highest probability of persuasion attainable by the sender under these conditions.
