[JaredL]

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What the hell is "Persuasion With Stochastic Signal Quantity"

(just a quick paragraph, not a dissertation please)

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Since we're in POG I'll start with the game I analyze.

I have one or two signals of quality. You don't know which. Each signal is a random number between zero and one. My quality is the average of my signals if I have two and the value of my signal if I have one. I can choose to reveal all, some, or none of my signals to you. This disclosure is honest. After I have revealed my signals, you have to guess my quality. The persuasion comes in because I want you to guess as high as possible (I'm trying to persuade you that I'm a good guy). You want to guess as closely as possible to my true quality.

This models firm behavior in situations where they have a variety of data and may or may not reveal it to investors. Investors not only don't have the information, but they don't know how much is out there.