Jeff Ely (Nothwestern University)

“Dynamic Multi-Agent Persuasion”

abstract

I study dynamic persuasion mechanisms with multiple agents.  A principal privately observes the evolution of a stochastic process and sends messages over time to strategically interacting agents.  Filtering information allows the principal to control beliefs and higher order beliefs, thereby influencing the behavior of agents.  In a stylized example of a bank run I show how private signals can optimally combat strategic complementarities.