We analyze costly information acquisition and information revelation in groups that evaluate different decision options in a dynamic setting. Even when team members have perfectly aligned interests the group may inefficiently delay decisions due to either insufficient information acquisition...

Rating agencies are often criticized for being biased in favor of borrowers, for being too slow to downgrade following credit quality deterioration, and for being oligopolists. Based on a model that takes into account the feedback effects of credit ratings, I show that: (i) a rating agency...