unverifiable private information about their costs. We investigate the conditions under which the firms cannot transmit any … information through cheap talk, and show that when these conditions are violated, it may be possible to construct informative …

In the context of firm decision-making, several motives for acquiring and conveying information exist. Information … acquire and communicate information. We employ a cheap-talk model with information acquisition and communication by a firm … incentive to overstate this value to persuade or impress external parties. We show that information acquisition and …

with the view that valuable information may be lost in hierarchical structures …

The paper examines the economic role of modelling information on the decision problem of an exporting firm under … exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal … conveys more information about the random foreign exchange rate. We analyze the interaction between market transparency and …

technology, we provide an information-theoretical foundation of the gravity equation that links bilateral trade flows with the … large effects on trade flows as importers endogenously process different amounts of information across countries. We also … show that, unlike traditional trade costs, information costs have non-monotonic implications for bilateral trade flows …

The paper examines the economic role of modelling information on the decision problem of an exporting firm under … exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal … conveys more information about the random foreign exchange rate. We analyze the interaction between market transparency and …

Sometimes we believe that others receive harmful information.However, Marschak’s value of information framework … information’s harmfulnessfor oneself. The impact of decision makers’ capabilities to processinformation and of their expectations … maker as a point of reference, this paperintroduces a way for evaluating others’ information from a cross …

-Bayesian way. Individuals either overweigh or underweigh (in Bayesian terms)their private information relative to the public … information revealed by the decisions of othersand each individual’s updating rule is private information. First, we consider a …

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 unboundedsupport. A necessary and sufficient condition for market breakdown is …