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Partly Verifiable Signals (c.n.)

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Presentation on theme: "Partly Verifiable Signals (c.n.)"— Presentation transcript:

1 Partly Verifiable Signals (c.n.)
Glazer and Rubinstein (ECMA 2004)

2 Glazer and Rubinstein persuasion game
State space finite with aspect Action space Sender always prefers Acceptance and rejection region Verification mechanism

3 Preferences over Verification Mechanism
Fix Let R preferences over verification mechanisms Type one error Type two error Optimal mechanism solves

4 L-principle Assume Consider any three types forming ``L’’
For any mechanism the sum of mistake probabilities is ``Mass of independent ``Ls’’ gives a lower bound for the number of mistakes Easy check of mechanism optimality

5 Examples Examples - Optimal deterministic mechanism
- Optimal bubbling mechanism - Optimal stochastic mechanism We consider finite problems with uniform distributions Number of mistakes

6 Direct deterministic mechanism
Let Number of independent L’s? Mechanism: Accept only if for at least one

7 No verification Let Number of independent L’s?
Mechanism: reject regardless of message

8 Stochastic vs deterministic mechanism
Let Consider three L’s Mechanism: Ask for two highest aspects, verify them with probability 0.5.

9 Definitions Direct mechanism Conservative direct mechanism
Observation: Direct mechanism need not be truthful

10 Auxiliary result Consider a problem
P1: There exist optimal mechanism for which vector solves C: is optimal iff implied solves Structure of the proof Byproduct: exists optimal mechanism that is direct and conservative.

11 Properties of

12 Proof

13 Proof


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