structural model of schooling and work decisions, where individuals have imperfect information about their schooling ability and … information on their ability and productivity. Our findings indicate that the elimination of informational frictions would …

The model of rational inattention with Shannon mutual information costs is increasingly ubiquitous. We introduce a new … entropy cost functions that better match this feature of the data and that retain key simplifying features of the Shannon …

Information is a fundamental component of all financial transactions and markets, but it can arrive in multiple forms …. We define what is meant by hard and soft information and describe the relative advantages of each. Hard information is … quantitative, easy to store and transmit in impersonal ways, and its information content is independent of its collection. As …

Employment matches under uncertainty are typically accompanied by opportunities for information acquisition. Workers … can acquire specific information about productivity lotteries at the firm or general information affecting their … probabilistic beliefs about work elsewhere. Enterprises can acquire specific information concerning the productivity of a particular …

Using a detailed dataset of hospitals' purchase orders, we find that information on purchasing by peer hospitals leads … to reductions in the prices hospitals negotiate for supplies. Identification is based on staggered access to information … high prices and for brands purchased in large volumes, and are consistent with resolving asymmetric information problems …

Consumers need information to compare alternatives for markets to function efficiently. Recognizing this, public … policies often pair competition with easy access to comparative information. The implicit assumption is that comparison … friction--the wedge between the availability of comparative information and consumers' use of it--is inconsequential because …

preferences, habits, and jumps. The metrics describe the pricing kernel's dispersion (the entropy of the title) and dynamics (time … dependence, a measure of how entropy varies over different time horizons). We show how each model generates entropy and time … approximations -- clarifies the mechanisms underlying these models. It also reveals, in some cases, tension between entropy, which …

. Informational rents arise from opportunistic participation based on private information while macroeconomic rents arise from free …

their actions and share their private information in a timely manner. This mechanism restores efficiency and suggests a …