We develop a model of intergeneratioal coresidence and transfers within the family in a setting of asymmetric information. Following an exchange motive altruistic parents receive services from their children, who may make them financial gifts in return. However, parents do not know the privacyc...

The new information and communication technology, ICT, induces households to take over tasks from firms and government agencies, using tools and systems provided by these very same organizations. The result is often joint production activities. We argue that the importance of ICT for the...

The new information and communication technology, ICT, induces households to take over tasks from firms and government agencies, using tools and systems provided by these very same organizations. The result is often joint production activities. We argue that the importance of ICT for the...

This paper considers models of intratemporal consumption-labor choice and intertemporal consumption choice under heterogeneity and private information in preferences towards labor. We show that market regime regarding unemployment insurance is important to determine the effects of heterogeneity...

This paper considers models of intratemporal consumption-labor choice and intertemporal consumption choice under heterogeneity and private information in preferences towards labor. We show that market regime regarding unemployment insurance is important to determine the effects of heterogeneity...

Credit underwriting is a dynamic process involving multiple interactions between borrower and lender. During this process, lenders have the opportunity to obtain hard and soft information from the borrower. We analyze more than 108,000 home equity loans and lines-of-credit applications to study...

Extreme adverse selection arises when private information has unboundedsupport, and market breakdown occurs when no trade is the only equilibriumoutcome. We study extreme adverse selection via the limit behavior of afinancial market as the support of private information converges to an...

Organizations design their communication structures to improve decision-making while limiting wasteful influence activities. An efficient communication protocol grants complete information payoffs to all organization members, thereby overcoming asymmetric information problems at no cost. This...

Information provision experiments have become pivotal in understanding how beliefs influence human behavior in various social science contexts. These experiments, which manipulate the information sets available to respondents, enable the exogenous alteration of beliefs and perceived constraints,...

Sometimes we believe that others receive harmful information.However, Marschak’s value of information framework alwaysassigns non-negative value under expected utility: it starts from the decisionmaker’s beliefs – and one can never anticipate information’s harmfulnessfor oneself. The...