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Analysis

This paper explores the theoretical underpinnings of Bayesian persuasion, a framework where a principal strategically influences an agent's decisions by providing information. The core contribution lies in developing axiomatic models and an elicitation method to understand the principal's information acquisition costs, even when they actively manage the agent's biases. This is significant because it provides a way to analyze and potentially predict how individuals or organizations will strategically share information to influence others.
Reference

The paper provides an elicitation method using only observable menu-choice data of the principal, which shows how to construct the principal's subjective costs of acquiring information even when he anticipates managing the agent's bias.