We develop a two-period general equilibrium model of portfolio delegation with competitive, differentially skilled managers and convex compensation contracts. We show that convex incentives lead to significant equilibrium mispricing, but reduce price volatility. In particular, price...

We study a general model of persuasion games under higher-order uncertainty about the sender's knowledge of an uncertain state variable. Unlike situations where such uncertainty is absent, we show that higher-order uncertainty eliminates truth-telling as an equilibrium. Instead, equilibrium...

We re-examine the seminal persuasion model of Dye (1985), focusing on the contracting power of current shareholders. Current shareholders determine the disclosure policy of a manager, who may be informed about the firm's value. Current shareholders desire higher future stock prices and dislike...