- (pp. 457-62)
AbstractWe study the design of informational environments in settings where generating information is costly. We assume that the cost of a signal is proportional to the expected reduction in uncertainty. We show that Kamenica & Gentzkow's (2011) concavification approach to characterizing optimal signals extends to these settings.
CitationGentzkow, Matthew, and Emir Kamenica. 2014. "Costly Persuasion." American Economic Review, 104 (5): 457-62. DOI: 10.1257/aer.104.5.457
- D82 Asymmetric and Private Information; Mechanism Design
- D83 Search; Learning; Information and Knowledge; Communication; Belief