Recognition: unknown
Calibrated Forecasting and Persuasion
read the original abstract
We study a dynamic game where an expert sends probabilistic forecasts to a decision-maker. The decision-maker verifies these forecasts using a calibration test based on past data. How should the expert send forecasts to maximize her payoff while passing the test? For a stationary ergodic process, we characterize the optimal forecasting strategy by reducing the dynamic game to a static persuasion problem. The distributions of forecasts that can arise under calibration are precisely the mean-preserving contractions of the distribution of conditionals. We compare the payoffs attainable by an informed and uninformed expert, providing a benchmark for the value of information. Finally, we consider a regret-minimizing decision-maker and show that the expert can always guarantee at least the calibration benchmark and sometimes strictly more.
This paper has not been read by Pith yet.
Forward citations
Cited by 1 Pith paper
-
Dynamic Cheap Talk without Feedback
Dynamic cheap talk without action feedback allows the sender to achieve any equilibrium payoff from a partial-commitment persuasion model and the Bayesian persuasion payoff when her payoff is state-independent.
discussion (0)
Sign in with ORCID, Apple, or X to comment. Anyone can read and Pith papers without signing in.