This paper extends the job market signaling model of Spence (1973) by allowing firms to learn the ability of their … select a unique separating equilibrium. When the Intuitive Criterion bites and information is purely asymmetric, the …

In this paper we challenge basic results of signaling models. In our banking model each project of a borrower is …

provide a framework with microeconomic foundations that give rise to matching frictions, which can be used to understand the … indeed, more frequently used aggregate matching technology. Existing differences turn out to be crucial for the empirical …

In my asymmetric-information model of layoffs, high-productivity workers are more likely to be recalled to their former … not have a positive signaling benefit. Analysis of the data from the January 1988-2000 Displaced Workers Supplements to … workers displaced through plant closings in the predicted way, and finds evidence consistent with asymmetric information in …

Information asymmetries are important in theory but difficult to identify in practice. We estimate the empirical …, combined with complete knowledge of the Lender's information set, permit identification of specific types of private … information problems. Specifically, our setup distinguishes adverse selection from moral hazard effects on repayment, and thereby …

wage-hours contracts within the framework of a two-period specific human capital model with asymmetric information. The …

information on the surplus created. Recent field experiments, however, suggest that trust and reciprocity may be lower or absent … when the information is incomplete. We report a laboratory experiment with symmetric and asymmetric incomplete surplus … information in a “bilateral gift exchange” setting. We find that trust and reciprocity have a significant positive effect on wages …