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The trade-off between the costs and benefits of disclosing a firm's private information has been the object of a vast literature. The absence of incentives to share information on a common market demand prior to competition has been advocated to interpret information sharing as evidence of...
Persistent link: https://www.econbiz.de/10013171765
, incomplete and irregular network can be stable, with firms observing high variance signals acting as "critical nodes". Finally …, when signals are correlated, the empty network may not be pairwise stable when the number of firms and/or correlation are …
Persistent link: https://www.econbiz.de/10009731783
This paper considers a population of agents that are engaged in a listening network. The agents wish to match their … neighbors in the network. I derive a closed expression for the (interim) social welfare loss that depends on the initial … information structure and on the possible pieces of information that can be gathered under the network. Then, I explore how …
Persistent link: https://www.econbiz.de/10011621465
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opposing forces: network effects and informational interdependencies. I show that two privacy enhancements — reducing the …
Persistent link: https://www.econbiz.de/10012963986
We introduce two pieces of information, denoted memes, into a diffusion process in which memes are transmitted when individuals meet and forgotten at an exogenous rate. At most one meme can be transmitted at a meeting, which introduces opportunity costs in the process. Individuals differ...
Persistent link: https://www.econbiz.de/10011279690
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. A network-embedded prediction market is an appropriate application of the information network model. Using a variety of …
Persistent link: https://www.econbiz.de/10013106967
We develop a dynamic framework of strategic information transmission through cheap talk in a social network. Privately … their neighbors in the network. We first characterize myopic (best response) equilibria as well as fully informative myopic … dominate farsighted equilibria, in particular if a social planner has designed the network optimally. …
Persistent link: https://www.econbiz.de/10012020319
I develop a theory of intermediation in a market where agents meet bilaterally to trade and buyers cannot commit to …
Persistent link: https://www.econbiz.de/10012806606