TY - GEN
T1 - Entropy-Regularized Optimal Transport in Information Design
AU - Justiniano, Jorge
AU - Kleiner, Andreas
AU - Moldovanu, Benny
AU - Rumpf, Martin
AU - Strack, Philipp
N1 - Publisher Copyright:
© 2025 Copyright is held by the owner/author(s). Publication rights licensed to ACM.
PY - 2025/7/2
Y1 - 2025/7/2
N2 - In this paper, we explore a scenario where a sender provides an information policy and a receiver, upon observing a realization of this policy, decides whether to take a particular action, such as making a purchase. The sender's objective is to maximize her utility derived from the receiver's action, and she achieves this by careful selection of the information policy. Building on the work of Kleiner et al., our focus lies specifically on information policies that are associated with power diagram partitions of the underlying domain. To address this problem, we employ entropy-regularized optimal transport, which enables us to develop an efficient algorithm for finding the optimal solution. We present experimental numerical results that highlight the qualitative properties of the optimal configurations, providing valuable insights into their structure. Furthermore, we extend our numerical investigation to derive optimal information policies for monopolists dealing with multiple products, where the sender discloses information about product qualities.
AB - In this paper, we explore a scenario where a sender provides an information policy and a receiver, upon observing a realization of this policy, decides whether to take a particular action, such as making a purchase. The sender's objective is to maximize her utility derived from the receiver's action, and she achieves this by careful selection of the information policy. Building on the work of Kleiner et al., our focus lies specifically on information policies that are associated with power diagram partitions of the underlying domain. To address this problem, we employ entropy-regularized optimal transport, which enables us to develop an efficient algorithm for finding the optimal solution. We present experimental numerical results that highlight the qualitative properties of the optimal configurations, providing valuable insights into their structure. Furthermore, we extend our numerical investigation to derive optimal information policies for monopolists dealing with multiple products, where the sender discloses information about product qualities.
KW - entropy-regularization
KW - information design
KW - moment Bayesian persuasion
KW - monopolist problem
KW - optimal transport
UR - https://www.scopus.com/pages/publications/105011588167
U2 - 10.1145/3736252.3742617
DO - 10.1145/3736252.3742617
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AN - SCOPUS:105011588167
T3 - EC 2025 - Proceedings of the 26th ACM Conference on Economics and Computation
SP - 741
EP - 760
BT - EC 2025 - Proceedings of the 26th ACM Conference on Economics and Computation
PB - Association for Computing Machinery, Inc
T2 - 26th ACM Conference on Economics and Computation, EC 2025
Y2 - 7 July 2025 through 10 July 2025
ER -