Entropy-Regularized Optimal Transport in Information Design

Fuente: arXiv
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Hauptverfasser: Justiniano, Jorge, Kleiner, Andreas, Moldovanu, Benny, Rumpf, Martin, Strack, Philipp
Format: Preprint
Veröffentlicht: 2024
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author Justiniano, Jorge
Kleiner, Andreas
Moldovanu, Benny
Rumpf, Martin
Strack, Philipp
author_facet Justiniano, Jorge
Kleiner, Andreas
Moldovanu, Benny
Rumpf, Martin
Strack, Philipp
contents 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.
format Preprint
id arxiv_https___arxiv_org_abs_2412_09316
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Entropy-Regularized Optimal Transport in Information Design
Justiniano, Jorge
Kleiner, Andreas
Moldovanu, Benny
Rumpf, Martin
Strack, Philipp
Numerical Analysis
Computer Science and Game Theory
Optimization and Control
49Q22, 65K10, 91B03
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.
title Entropy-Regularized Optimal Transport in Information Design
topic Numerical Analysis
Computer Science and Game Theory
Optimization and Control
49Q22, 65K10, 91B03
url https://arxiv.org/abs/2412.09316