In delegated Bayesian persuasion with moral hazard, first-best implementation requires local support and global affine alignment conditions on payoff indices; otherwise the second-best uses a virtual concavified objective with the principal's index distorted by a scalar shadow price.
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Moral Hazard in Delegated Bayesian Persuasion
In delegated Bayesian persuasion with moral hazard, first-best implementation requires local support and global affine alignment conditions on payoff indices; otherwise the second-best uses a virtual concavified objective with the principal's index distorted by a scalar shadow price.