Belief inducibility and informativeness

P.J.J. Herings, Dominik Karos, Toygar T. Kerman*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We consider a group of receivers who share a common prior on a finite state space and who observe private correlated messages that are contingent on the true state of the world. Our focus lies on the beliefs of receivers induced via the signal chosen by the sender and we provide a comprehensive analysis of the inducible distributions of posterior beliefs. Classifying signals as minimal, individually minimal, and language-independent, we show that any inducible distribution can be induced by a language-independent signal. We investigate the role of the different classes of signals for the amount of higher order information that is revealed to receivers. The least informative signals that induce a fixed distribution over posterior belief profiles lie in the relative interior of the set of all language-independent signals inducing that distribution.

Original languageEnglish
Pages (from-to)517-553
Number of pages37
JournalTheory and Decision
Volume96
Issue number4
DOIs
Publication statusPublished - Jun 2024

Keywords

  • Game theory
  • Inducible distributions
  • Information design
  • Informativeness

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