A characterization of equilibrium set of persuasion games with binary actions

This paper considers a persuasion game between one sender and one receiver. The perfectly informed sender can fully certify any private information that is drawn from a continuum set, and the receiver has binary actions. We focus on the situation where both full information disclosure and full information suppression are impossible. We characterize the set of pure strategy equilibria in terms of informativeness measured by the receiver’s ex ante expected utility in this environment; there exist continuum equilibria. The set is characterized by the most and the least informative equilibria, and then any value between the bounds can be supported in equilibrium with transparent construction of the associated equilibrium.