Persuasion with correlation neglect: a full manipulation result
We consider an information design problem in which a sender tries to persuade a receiver that has "correlation neglect," i.e., fails to understand that signals might be correlated. We show that a sender with unlimited number of signals can fully manipulate the receiver. Specifically, the s...
| Main Authors: | , , |
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| Format: | Journal article |
| Language: | English |
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American Economic Association
2022
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| _version_ | 1826308449766473728 |
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| author | Levy, G Moreno De Barreda, I Razin, R |
| author_facet | Levy, G Moreno De Barreda, I Razin, R |
| author_sort | Levy, G |
| collection | OXFORD |
| description | We consider an information design problem in which a sender tries to persuade a receiver that has "correlation neglect," i.e., fails to understand that signals might be correlated. We show that a sender with unlimited number of signals can fully manipulate the receiver. Specifically, the sender can induce the receiver to hold any state-dependent posterior she wishes to. If the sender only wishes to induce a state-independent posterior, she can use fully correlated signals, but generally she needs to design more involved correlation structures. |
| first_indexed | 2024-03-07T07:19:40Z |
| format | Journal article |
| id | oxford-uuid:4f255414-8aeb-4c07-9dac-899fe6956c38 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T07:19:40Z |
| publishDate | 2022 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | oxford-uuid:4f255414-8aeb-4c07-9dac-899fe6956c382022-09-16T12:01:06ZPersuasion with correlation neglect: a full manipulation resultJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:4f255414-8aeb-4c07-9dac-899fe6956c38EnglishSymplectic ElementsAmerican Economic Association2022Levy, GMoreno De Barreda, IRazin, RWe consider an information design problem in which a sender tries to persuade a receiver that has "correlation neglect," i.e., fails to understand that signals might be correlated. We show that a sender with unlimited number of signals can fully manipulate the receiver. Specifically, the sender can induce the receiver to hold any state-dependent posterior she wishes to. If the sender only wishes to induce a state-independent posterior, she can use fully correlated signals, but generally she needs to design more involved correlation structures. |
| spellingShingle | Levy, G Moreno De Barreda, I Razin, R Persuasion with correlation neglect: a full manipulation result |
| title | Persuasion with correlation neglect: a full manipulation result |
| title_full | Persuasion with correlation neglect: a full manipulation result |
| title_fullStr | Persuasion with correlation neglect: a full manipulation result |
| title_full_unstemmed | Persuasion with correlation neglect: a full manipulation result |
| title_short | Persuasion with correlation neglect: a full manipulation result |
| title_sort | persuasion with correlation neglect a full manipulation result |
| work_keys_str_mv | AT levyg persuasionwithcorrelationneglectafullmanipulationresult AT morenodebarredai persuasionwithcorrelationneglectafullmanipulationresult AT razinr persuasionwithcorrelationneglectafullmanipulationresult |