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Journal of Political Economy Vol. 130 No. 10 2022

Persuasion via Weak Institutions

Elliot Lipnowski1; Doron Ravid; Denis Shishkin2

1 Columbia University · 2 University of California San Diego

Abstract

A sender commissions a study to persuade a receiver but influences the report with some probability. We show that increasing this probability can benefit the receiver and can lead to a discontinuous drop in the sender’s payoffs. To derive our results, we geometrically characterize the sender’s highest equilibrium payoff, which is based on the concavification of a capped value function.

DOI
10.1086/720462
Volume
130
Issue
10
Pages
2705-2730
Language
en
Sources
crossref bibtex:phds-export.bib openalex

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