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Self-or Rival-Revelation? Dynamic Information Design in Sequential Competition
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| 其它 | 刘云川,部分摘要In uncertain environments, consumers seek and interpret information to reduce ambiguity and guide their choices and purchase decisions. In this paper, we study how firms strategically design information about either themselves or their rivals to influence consumer purchase decisions in dynamic competition. We construct a dynamic Bayesian persuasion model in which a leader firm and a follower firm sequentially design and send their information to consumers to strategically shape consumers' beliefs on the two firms' product match. Our analysis shows that, strikingly, the leader firm may choose to “serve” the competing rival firm with a high risk gambler strategy of fully providing the rival information to consumers, especially when consumers have moderate prior beliefs for the leader firm. |
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(2025-6-4)