This paper performs a welfare analysis of economies with private information when public information is endogenously … in information). The reason is that the market in general does not internalize the informational externality when public … statistics (e.g., prices) convey information. Under strategic substitutability, equilibrium prices will tend to convey too little …

This paper reports on experiments testing the viability of markets for cheap talk information. We find that the poor … quality of the information transmitted leads to a collapse of information markets. The reasons for this are surprising given … the previous experimental results on cheap-talk games. Our subjects provide low-quality information even when doing so …

Information about the future may be instrumentally useful, yet scary. For example, many patients shy away from precise … interacts with an instrumental need for information. The same result emerges when patients rely on probability weighting …

In this paper we build a formal model to study market environments where information is costly to acquire and is of use … also to potential competitors. In such situations a market for information may form, where reports - of unverifiable … quality - over the information acquired are sold. A complete characterization of the equilibria of the game is provided. We …

This paper explores the role of information transmission in explaining donors' choice between project aid and budget …, when countries' local knowledge is more important than donors' information, recipient countries' discretion in the choice …' information is more relevant (centralization). The empirical analysis confirms that the importance of donors' private information …

' consists of unverifiable information and the quality of communication depends on the conflict of interests between the …This paper explores the role of information transmission and misaligned interests across levels of government in … explaining variation in the degree of decentralization across countries. Within a two-sided incomplete information principal …

We study a general static noisy rational expectations model, where investors have private information about asset … information, in relation to the usual public learning channel. When the private learning channel is strong (weak) in relation to … results enable a precise characterization of whether information acquisition decisions are strategic substitutes or …

This paper characterizes geometrically the set of all Nash equilibrium payoffs achievable with unmediated communication …'s information is certifiable. The first equilibrium characterization is provided for unilateral persuasion games, and the second for … his equilibrium payoff compared to all equilibria of the unilateral persuasion game by delaying information certification …

We consider an experiment with a version of the Battle of the Sexes game with two-sided private information, allowing a … truthful revelation of information and subsequent payoffs from the game. We find that the players are overall truthful about …-talk equilibrium in the two-way cheap talk game is played when they players fully reveal their information; however, they achieve …

benefits only if they aggregate their private information. Some members of the society, however, are harmed by socially … desirable policies and aim at manipulating information aggregation by misrepresenting their private information. We show that … information can be aggregated and a socially desirable policy can be implemented under a new class of democratic mechanisms …