Doval, Laura;
Skreta, Vasiliki;
(2023)
Constrained Information Design.
Mathematics of Operations Research
, 49
(1)
10.1287/moor.2022.1346.
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Abstract
We provide tools to analyze information design problems subject to constraints. We do so by extending an insight by Le Treust and Tomala to the case of multiple inequality and equality constraints. Namely, that an information design problem subject to constraints can be represented as an unconstrained information design problem with additional states, one for each constraint. Thus, without loss of generality, optimal solutions induce as many posteriors as the number of states and constraints. We provide results that refine this upper bound. Furthermore, we provide conditions under which there is no duality gap in constrained information design, thus validating a Lagrangian approach. We illustrate our results with applications to mechanism design with limited commitment and persuasion of a privately informed receiver. Funding: L. Doval acknowledges the support of the National Science Foundation through [Grant SES-2131706]. V. Skreta acknowledges the support from the National Science Foundation through [Grant SES-1851729] and from the European Research Council (ERC) through consolidator [Grant 682417]. Supplemental Material: The e-companion is available at https://doi.org/10.1287/moor.2022.1346 .
| Type: | Article |
|---|---|
| Title: | Constrained Information Design |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1287/moor.2022.1346 |
| Publisher version: | https://doi.org/10.1287/moor.2022.1346 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Information design, Bayesian persuasion, constrained optimization |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10187377 |
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