conclude that it might be better to reduce the precision of public signals or entirely withhold information. This paper shows … that public information should always be provided with maximum precision, but under certain conditions not to all agents …

laboratory experiment we test the different theories by systematically varying information conditions. We find significant … effects of seemingly innocent changes in information. Moreover, the generalized imitation model predicts the differences …

appropriate information provision enhances efficiency. We discuss extensions of the model and argue that subsidies may be a … property of a signalling equilibrium to overcome credibility problems in information provision. In addition we point out … possible problems with overreaction to public information. Furthermore, we suggest a new focus for development policy. …