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We study markets for sensitive personal information. An agent wants to communicate with another party but any revealed information can be intercepted and sold to a third party whose reaction harms the agent. The market for information induces an adverse sorting effect, allocating the information...
Persistent link: https://www.econbiz.de/10011380192
We study markets for sensitive personal information. An agent wants to communicate with another party but any revealed information can be intercepted and sold to a third party whose reaction harms the agent. The market for information induces an adverse sorting effect, allocating the information...
Persistent link: https://www.econbiz.de/10011433634
Persistent link: https://www.econbiz.de/10003518841
We consider a monopolistic certifier selling certification services to a partially privately informed seller. The certifier can enable the seller to disclose her private information publicly, as well as gather additional market information about the good's quality publicly. We show that the...
Persistent link: https://www.econbiz.de/10015053483
) private information with sequential, two-way communication. In the first stage, the buyer communicates her private preferences …
Persistent link: https://www.econbiz.de/10014479178
We study an organization with a top management (principal) and multiple subunits (agents) with private information that determine the organization's aggregate efficiency. Under centralization, eliciting the agents' private information may induce the principal to manipulate aggregate information,...
Persistent link: https://www.econbiz.de/10011904801
We study information flows in an organization with a top management (principal) and multiple subunits (agents) with private information that determines the organization's aggregate efficiency. Under centralization, eliciting the agents' private information may induce the principal to manipulate...
Persistent link: https://www.econbiz.de/10014476692
Unfavorable news are often delivered under the disguise of vagueness. Our theory-driven laboratory experiment …
Persistent link: https://www.econbiz.de/10013191455
In Spence's (1973) signaling by education model and in many of its extensions, firms can only infer workers' productivities from their education choices. In reality, firms also use sophisticated pre-employment auditing to learn workers' productivities. We characterize the trade-offs between...
Persistent link: https://www.econbiz.de/10011878774
This paper shows that agent inattention to taxes generates a time-inconsistency problem in the choice of tax policy. In … equilibrium, inattention leads to inefficiently high tax rates and a taxation bias emerges. Combining structural and sufficient …. Overall, our findings shed new light on the policy and welfare implications of inattention and misperceptions. …
Persistent link: https://www.econbiz.de/10013193793