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How should an agent (the sender) observing multi-dimensional data (the state vector) persuade another agent to take the desired action? We show that it is always optimal for the sender to perform a (non-linear) dimension reduction by projecting the state vector onto a lower-dimensional object...
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In many trade environments - such as online markets - buyers fully learn their valuation for goods only after contracting. I characterize the buyer-optimal ex-ante information in such environments. Employing a classical sequential screening framework, I find that buyers prefer to remain...
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We study communication in ambiguous environments. Agents communicate individual decisions sequentially. Based on the …, the decisions differ no matter how long the communication lasts. Such persistent disagreements are precluded in Bayesian … frameworks endowed with a common prior. When communication is private and nobody is excluded from it, we show that ambiguity …
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