Abstrakt
In a world where one person has a privilege to design informational environment of another person, often the former attempts to persuade the latter. I study a standard Bayesian persuasion game with two players, Sender and Receiver.
I introduce into this setup a constraint on Receiver's information processing. I show that the equilibrium information strategy depends on the information acquiring and processing costs, and has a bottleneck-like nature.
Hence, Receiver's inattention can substantially limit Sender's attempts at persuasion, what occurs when Receiver's cost of information processing is higher than Sender's. In contrast to existing literature, this suggests that the degree of persuasion is also influenced by Receiver's characteristics.