Cornand, Camille; Heinemann, Frank; Tobias - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2013
behavior of others. This may lead to welfare-reducing ‘overreactions’ to public signals as shown by Morris and Shin (2002 … levels of reasoning. This paper analyzes the welfare effects of public information under limited levels of reasoning and … information cannot reduce welfare, unless the policy maker has instruments that are perfect substitutes to private actions. …