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significant expected payoffs when they shun uncertain alternatives in favor of known ones. Worse, when information is revealed …
Persistent link: https://www.econbiz.de/10011049682
This paper investigates the role of endogenous timing of decisions on coordination under asymmetric information. In the … coordination: a learning effect (early decisions reveal information) and a complementarity effect (early decisions eliminate …
Persistent link: https://www.econbiz.de/10011049850
I study a 2-bidder infinitely repeated IPV first-price auction without transfers, communication, or public randomization, where each bidderʼs valuation can assume, in each of the (statistically independent) stage games, one of three possible values. Under certain distributional assumptions, the...
Persistent link: https://www.econbiz.de/10011049799
We consider a licensing mechanism for process innovations that awards a limited number of unrestricted licenses to those firms that report the highest cost reductions, combined with royalty licenses to others. Firmsʼ messages are dual signals of their cost reductions: the message of those who...
Persistent link: https://www.econbiz.de/10011049835
partial information. We characterize the solution in some special cases and discuss the computability of the solution in more …
Persistent link: https://www.econbiz.de/10011117130
state spaces. The results imply that when there are multiple experts from whom to solicit information, if the state space is …
Persistent link: https://www.econbiz.de/10011117135
Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue that the connection between overconfidence and innovation is more complex than the previous literature suggests. In particular, we show theoretically and experimentally that...
Persistent link: https://www.econbiz.de/10010738050
We study first- and second-order subjective expectations (beliefs) in strategic decision-making. We elicit probabilistically both first- and second-order beliefs and apply the method to a Hide-and-Seek experiment. We study the relationship between choice and beliefs in terms of whether observed...
Persistent link: https://www.econbiz.de/10010738051
In this paper we study market environments where information is costly to acquire and is also useful to potential … competitors. Agents may sell, or buy, reports over the information acquired and choose their trades in the market on the basis of … what they learnt. Reports are unverifiable – cheap talk messages – hence the quality of the information transmitted depends …
Persistent link: https://www.econbiz.de/10010738052
two dimensions: the strength of the coordination motive and the information symmetry. We use a variation of the Morris and … information and a strong coordination motive. Their predictive power weakens significantly when either private information is …
Persistent link: https://www.econbiz.de/10010785207