We re-examine the seminal persuasion model of Dye (1985), focusing on the contracting power of current shareholders. Current shareholders determine the disclosure policy of a manager, who may be informed about the firm's value. Current shareholders desire higher future stock prices and dislike...

We study a general model of persuasion games under higher-order uncertainty about the sender's knowledge of an uncertain state variable. Unlike situations where such uncertainty is absent, we show that higher-order uncertainty eliminates truth-telling as an equilibrium. Instead, equilibrium...