Attention costs can cause some information to be ignored and decisions to be imperfect. Can we improve the material welfare of a rationally inattentive agent by restricting his …
P Dütting, M Feldman, D Peretz, L Samuelson - Econometrica, 2024 - Wiley Online Library
We explore the deliberate infusion of ambiguity into the design of contracts. We show that when the agent is ambiguity‐averse and hence chooses an action that maximizes their …
S Kosterina - Theoretical Economics, 2022 - Wiley Online Library
A sender designs an information structure to persuade a receiver to take an action. The sender is ignorant about the receiver's prior, and evaluates each information structure using …
LG Epstein, Y Halevy - Journal of the European Economic …, 2024 - academic.oup.com
Decisions under uncertainty are often made with information whose interpretation is uncertain because multiple interpretations are possible. Individuals may perceive and …
We study incomplete information games with ambiguity averse players. Our focus is on equilibrium concepts satisfying sequential optimality—each player's strategy is optimal at …
A Malenko, A Tsoy - Available at SSRN 3100285, 2020 - papers.ssrn.com
A privately informed issuer raises project financing from an uninformed investor through a security sale. The investor faces Knightian uncertainty and evaluates each security by the …
I study the problem of a persuader who proposes a set of models to manipulate how a boundedly rational agent interprets observable signal realizations. The persuader does not …
With standard models of updating under ambiguity, new information may increase the amount of relevant ambiguity: the set of beliefs may 'dilate.'We experimentally test one sharp …
This paper studies robust Bayesian persuasion of a privately informed receiver in a binary environment, where an ambiguity-averse sender with a maxmin expected utility function has …