This thesis consists of three essays in capital markets. The first essay presents a dynamic asset pricing model with heterogeneously informed agents. Unlike previous research, the general case where differential information leads to the problem of "forecasting the forecasts of others" and to...

Essay 1: Shopping Goals, Goal Concreteness, and Conditional Promotions. We propose a two-stage model to describe the increasing concreteness of consumers' goals during the shopping process, testing the model through a series of field experiments at a convenience store. Using a number of...

In the first chapter, I provide evidence that investment-specific technological change is a source of systematic risk. In contrast to neutral productivity shocks, the economy needs to invest to realize the benefits of innovations in investment technology. A positive shock to investment...

Individuals are involved in daily decision making situations under varying levels of certainty and ease of gathering information, characterized by many factors such as the need to make payments, or the desire to fulfill goals. Essay 1 proposes that when individuals are faced with environments...

Essay 1: Translation Errors in the Aggregation of Consumer Recommendations There has been a substantial increase of websites providing consumers with recommendations about products and services. These recommendations are usually presented in the form of verbal reviews and numerical ratings. It...