Learning Manipulation Through Information Dissemination

Abstract

Much of the past learning and control literature has focused on the design of information acquisition processes for the demand side of information and has assumed that information supply is always genuine. However, in many economic and management settings, the information provider has incentives to strategically disseminate his/her private information, even in a possibly biased way. For example, a company may advertise deceptively to sell its products. In the paper “Learning Manipulation Through Information Dissemination,” Keppo, Kim, and Zhang take the perspective of an information provider and study the optimal manipulation of a learning process through the adaptive design of (mis)information. The authors explicitly characterize both the optimal manipulation policy and the learner’s belief process under such manipulation. They also extend their analysis to social learners who rely on public reviews to resist manipulation and show that social learning indeed mitigates misinformation in the long run.