Timely Persuasion
Speaker: Zhen Zhou (Tsinghua University)
Date: March 29, Friday, 2019
Time: 11 am - 12 pm
Venue: Room 1200 at Pudong Campus
Abstract:
We consider a regime change game but allow the agents to attack within a time window. Attack is irreversible and delayed attack is costly. There could be panic-based attacks, i.e., the agents attack thinking others will attack, even though it is not warranted. We propose a simple dynamic information disclosure policy, called "disaster alert", which at a given date publicly discloses whether the regime is doomed to fail. We show that a timely alert persuades the agents to wait for the alert and not attack if the alert is not triggered, regardless of their private signals, and thus, eliminates panic.
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