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Title: Persuasion on Networks

Author(s): Georgy Egorov and Konstantin Sonin

Publication Date: May 2019

Keyword(s): Bayesian persuasion, networks, percolation and Propaganda

Programme Area(s): Public Economics

Abstract: We analyze persuasion in a model, in which each receiver might buy a direct access to the sender's signal or to rely on her network connections to get it. For the sender, a higher slant increases the impact per direct receiver, yet diminishes the willingness of agents to receive information. Contrary to naive intuition, the optimal propaganda might target peripheral, rather than centrally-located agents, and is at its maximum levels when the probability that information flows between agents is close to zero or nearly one, but not in-between. The impact of the network density depends on this probability as well.

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Bibliographic Reference

Egorov, G and Sonin, K. 2019. 'Persuasion on Networks'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13723