An increasingly important organisational design problem for many firms is to recoup general human capital rents while maintaining attractive career prospects for workers. We explore the role of information management in this context. In our model, an information management policy determines the...

We study a market with entrepreneurial and workers entry where both entrepreneurs' abilities and workers' qualities are private information. We develop an Agent-Based Computable model to mimic the mechanisms described in a previous analytical model (Boadway and Sato 2011). Then, we introduce the...

Internet message boards are inherently a world of cheap talk due to the anonymity of message authors. This paper investigates whether a pecuniary reputation system influences the adverse selection endemic to message boards. First, we find evidence that such a authors with high reputation scores...

Does a larger fraction of informed trading generate more illiquidity, as measured by the bid--ask spread? We answer this question in the negative in the context of a dynamic dealer market where the fundamental value follows a random walk, provided we consider the long run (stationary)...

Contrary to the prediction of the classic adverse selection theory, informed speculators receive better pricing relative to uninformed liquidity traders in over-the-counter financial markets. Dealers compete for information by chasing informed orders so as to better position their future price...

How effectively does a decentralized marketplace aggregate information that is dispersed throughout the economy? We study this question in a dynamic setting where sellers have private information that is correlated with an unobservable aggregate state. In any equilibrium, each seller's trading...

We demonstrate that asymmetric information between sellers (loan originators) and purchasers (investors and securities issuers) of commercial mortgages gives rise to a standard “lemons problem”, whereby portfolio lenders use private information to liquidate lower quality loans in CMBS...

The impact finance market has sought to 'internalise externalities and adjust risk perceptions' (G20 Green Finance Study Group, 2016), demonstrating the private sector's capability in resolving the climate free-rider problem through the 'greening' of economic activities, partially bypassing...

Contrary to the prediction of the classic adverse selection theory, a more informed trader could receive better pricing relative to a less informed trader in over‑the‑counter financial markets. Dealers chase informed orders to better position their future quotes and avoid winner’s curse in...