Research Details

Abstract

We develop a sender-receiver model of rhetorical ability, which we use to study markets for advertising or other rhetorical services. The sender has private information about a state and her rhetorical ability, which together determine the arguments that she can make. We characterize equilibrium persuasion subject to a refinement. In equilibrium, higher-ability senders make stronger arguments and better persuade the receiver. If the sender can purchase a service that improves her rhetorical ability, the equilibrium value of this service depends on receiver beliefs and hence sender purchasing behavior. This feedback effect influences pricing and can lead to upward-sloping equilibrium demand.

Type

Working Paper

Author(s)

Daniel Barron, Michael Powell

Date Published

2018

Citations

Barron, Daniel, and Michael Powell. 2018. Markets for Rhetorical Ability.