Under asymmetric information, dishonest sellers lead to market unraveling in the lemons model. An additional cost of …

quality goods are able to use prices as a signaling device and this enables them to trade. However, not all sellers of high …

), Miyazaki (1977) and Spence (1978). Consumers have private information on their risk profile and the frequency with which they …

experiments. However, traders' acquisition cost of information has typically been ignored. Results from a laboratory experiment … involving six treatments varying the cost of acquiring signals of an asset's value suggest that when information is costly …, markets do not succeed in aggregating it. At an individual level, having information improves trading performance, but not …

commitment and its preferences being private information; and that a successful mechanism must handle both of the problems. With … commitment to peg is strengthened. That the insurance scheme serves as a commitment device renders it an ineffective signaling … device: in the game where the government's type is private information, a separating equilibrium does not, in general, exist …