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How does lie detection constrain the potential for one person to persuade another to change her action? We consider a model of Bayesian persuasion in which the Receiver can detect lies with positive probability. We show that the Sender lies more when the lie detection probability increases. As...
Persistent link: https://www.econbiz.de/10013210093
: welfare converges to either full efficiency or zero as n→∞ depending on a precise condition on the rate at which the share …
Persistent link: https://www.econbiz.de/10014544751
We study a sequential experimentation model with endogenous feedback. Agents choose between a safe and risky action, the latter generating stochastic rewards. When making this choice, each agent is selfishly motivated (myopic). However, agents can disclose their experiences to a public record,...
Persistent link: https://www.econbiz.de/10014544761
As climate risk escalates, property insurance is critical to reduce the risk exposure of households and firms and to aid recovery when disasters strike. To perform these functions efficiently, insurers need to access high quality information about disaster risk and set prices that accurately...
Persistent link: https://www.econbiz.de/10014576654
We study a standard collective action problem in which successful achievement of a group interest requires costly participation by some fraction of its members. How should we model the internal organization of these groups when there is asymmetric information about the preferences of their...
Persistent link: https://www.econbiz.de/10014226188
Two potentially asymmetric players compete for a prize of common value, which is initially unknown, by exerting efforts. A designer has two instruments for contest design. First, she decides whether and how to disclose an informative signal of the prize value to players. Second, she sets the...
Persistent link: https://www.econbiz.de/10014247957
I study how policymakers can access and act on the information about climate change damages that is dispersed throughout the economy. I analyze a new dynamic deposit-refund instrument (called "carbon shares") that I show can: i) efficiently price emissions conditional on information, ii)...
Persistent link: https://www.econbiz.de/10013435097
We analyze how information disclosure policy affects investment efficiency in non-cooperative settings with information …
Persistent link: https://www.econbiz.de/10013435110
We propose a political economy mechanism that explains the presence of fiscal regimes punctuated by crisis periods. Our model focuses on the interaction between successive deficit-biased governments subject to i.i.d. fiscal shocks. We show that the economy transitions between a fiscally...
Persistent link: https://www.econbiz.de/10013435163
We analyze the offering, asking, and granting of help or other benefits as a three-stage game with bilateral private information between a person in need of help and a potential help-giver. Asking entails the risk of rejection, which can be painful: since unawareness of the need can no longer be...
Persistent link: https://www.econbiz.de/10013388842