Wednesday 24 October 2018, 1.00PM to 2.15pm
Speaker(s): Andy Zapechelnyuk (St. Andrews)
Abstract: There are two common ways for a principal to influence the decision making of an agent. One is to manipulate the agent's information (persuasion problem). Another is to limit the agent's decisions (delegation problem). We show that, under general assumptions, these two problems are equivalent; so solving one problem solves the other. We illustrate how the methods developed in the persuasion literature can be applied to address unsolved delegation problems by considering monopoly regulation with a participation constraint.
Location: Alan Maynard Auditorium (R/C/014)
Admission: All welcome