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Working Paper
Persuasion with Ambiguous Communication
Author(s)
This paper explores whether and to what extent ambiguous communication can be beneficial to the sender in a persuasion problem, when the receiver (and possibly the sender) is
ambiguity averse. We provide a concavification-like characterization of the sender’s optimal
ambiguous communication. The characterization highlights the necessity of using a collection
of experiments that form a splitting of an obedient experiment, that is, whose recommendations
are incentive compatible for the receiver. At least some of the experiments in the collection
must be Pareto-ranked in the sense that both the sender and receiver agree on their payoff
ranking. The existence of a binary such Pareto-ranked splitting is necessary for ambiguous
communication to benefit the sender, and, if an optimal Bayesian persuasion experiment can
be split in this way, this is sufficient for an ambiguity-neutral sender as well as the receiver to
benefit. We show such gains are impossible when the receiver has only two actions available.
Such gains persist even when the sender is ambiguity averse, as long as not too much more so
than the receiver and not infinitely averse.
Date Published:
2024
Citations:
Cheng, Xiaoyu, Peter Klibanoff, Sujoy Mukerji, Ludovic Renou. 2024. Persuasion with Ambiguous Communication.