Showing 1 - 10 of 94
Technological progress is typically a result of trial-and-error research by competing firms. While some research paths lead to the innovation sought, others result in dead ends. Because firms benefit from their competitors working in the wrong direction, they do not reveal their dead-end...
Persistent link: https://www.econbiz.de/10009366835
This paper studies the reputation effect in which a long-lived player faces a sequence of uninformed short-lived players and the uninformed players receive informative but noisy exogenous signals about the type of the long-lived player. We provide an explicit lower bound on all Nash equilibrium...
Persistent link: https://www.econbiz.de/10010608020
Asymmetric information is an important source of inefficiency when assets (like firms) are transacted. The two main sources of this asymmetry are unobserved idiosyncratic characteristics of the asset (for example, quality) and unobserved idiosyncratic choices (actions done by the current...
Persistent link: https://www.econbiz.de/10010540631
Asymmetric information is an important source of inefficiency when an asset (such as a firm) is transacted. The two main sources of this asymmetry are the unobserved idiosyncratic characteristics of the asset (such as future profitability) and unobserved idiosyncratic choices (like secret price...
Persistent link: https://www.econbiz.de/10010774308
Asymmetric information is an important source of inefficiency when an asset (such as a firm) is transacted. The two main sources of this asymmetry are the unobserved idiosyncratic characteristics of the asset (such as future profitability) and unobserved idiosyncratic choices (like secret price...
Persistent link: https://www.econbiz.de/10010822908
This paper studies the interaction between coordination and social learning in a dynamic regime change game. Social … learning provides public information to which players overreact due to the coordination motive. So coordination affects the …, social learning is a source of coordination failure. An extension shows that if players could individually learn, inefficient …
Persistent link: https://www.econbiz.de/10009188957
This note provides several generalizations of Mailath's (1987) result that incentive compatibility plus separation implies differentiability. The new results extend the theory to classic models in finance such as Leland and Pyle (1977), Glosten (1989), and De Marzo and Duffie (1999), that were...
Persistent link: https://www.econbiz.de/10008672484
This paper studies the aggregate consequences of individual learning in the labor market. Specifically, I examine this … behavior of workers naturally occurs, resulting from a variety of individual histories. I describe the efficient learning and …
Persistent link: https://www.econbiz.de/10009366838
We develop a dynamic model of opinion formation in social networks when the information required for learning a payoff … though the neighbors’ views may be quite inaccurate). This non-Bayesian learning rule is motivated by the formidable …
Persistent link: https://www.econbiz.de/10009275487
This paper demonstrates that a misspecified model of information processing interferes with long-run learning and … to learn the true state. I consider a social learning environment where agents draw inference from private signals … efficient learning. Prior actions aggregate multiple sources of information; agents face an inferential challenge to distinguish …
Persistent link: https://www.econbiz.de/10010822879