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Algorithmic Bayesian Persuasion

Persuasion, defined as the act of exploiting an informational advantage in order to effect the decisions of others, is ubiquitous. Indeed, persuasive communication has been estimated to account for almost a third of all economic activity in the US. This paper examines persuasion through a computational lens, focusing on what is perhaps the most basic and fundamental model in this space: the celebrated Bayesian persuasion model of Kamenica and Gentzkow. Here there are two players, a sender and a receiver. The receiver must take one of a number of actions with a-priori unknown payoff, and the sender has access to additional information regarding the payoffs. The sender can commit to revealing a noisy signal regarding the realization of the payoffs of various actions, and would like to do so as to maximize her own payoff assuming a perfectly rational receiver. We examine the sender's optimization task in three of the most natural input models for this problem, and essentially pin down its computational complexity in each. When the payoff distributions of the different actions are i.i.d. and given explicitly, we exhibit a polynomial-time (exact) algorithm, and a "simple" $(