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- W3206083321 abstract "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 for the sender to perform a (non-linear) dimension reduction by projecting the state vector onto a lower-dimensional object that we call the optimal information manifold. We characterize geometric properties of this manifold and link them to the sender's preferences. Optimal policy splits information into and bad components. When the sender's marginal utility is linear, it is always to reveal the full magnitude of good information. In contrast, with concave marginal utility, information design conceals the extreme realizations of good information and only reveals its direction (sign). We illustrate these effects by explicitly solving several multi-dimensional Bayesian persuasion problems." @default.
- W3206083321 created "2021-10-25" @default.
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- W3206083321 date "2021-01-01" @default.
- W3206083321 modified "2023-09-26" @default.
- W3206083321 title "Persuasion by Dimension Reduction" @default.
- W3206083321 hasPublicationYear "2021" @default.
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