In the first chapter, I analyze the US banking industry in order to explain two facts. First, larger banks have lower but less volatile returns on loans compared to smaller banks over the years. Second, larger borrowers have better financial records, i.e. verifiable "hard" information, and they...

Certifiers have a crucial role in facilitating effective communication in the online and the traditional world. As a way of generating statistically meaningful information, certification has been adopted in financial statements evaluation and more recently in various online communities as well....

This dissertation consists of three essays that apply both economic theory and econometric methods to understand design and dynamics of institutions. In particular, it studies how institutions aggregate information and deal with uncertainty and attempts to derive implications for optimal...