In sender-designed experiments, the sender can manipulate the phase-K interim belief only by designing the experiment at phase K-1, which is crucial for optimal signaling.
The essence of backward iteration and the principle of optimality allows us to determine how sender-designed versus determined experiments affect each phase's interim beliefs.
When conducting sender-designed experiments in phase N-1, choosing a strategy on the frontier of all persuasion-ratio curves becomes central to formulating an optimal strategy.
Determined experiments impose constraints on the interim belief, particularly affecting the posterior belief at the final phase, which guides the receiver's actions.
#binary-outcome-experiments #two-phase-trials #optimal-signaling-strategy #bayesian-persuasion #interim-beliefs
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