strategic advice to taxpayers. This paper formalizes this role, using a simple asymmetric information model where agents can … purchase full information about the government's enforcement rules. In a competitive market for tax preparation services … evasion by revealing full information about its audit rule …

the last decade large efforts have been made to increase the availability of information to travelers by means of advanced … traveler information systems (ATIS). This paper reviews economic aspects of information in transport markets. First, I will … discuss information acquisition from an economics perspective by characterizing costs and benefits of information, leading to …

Transparent disclosures of public information might be one natural policy to reduce information inequality among … individuals. We conduct a welfare analysis of such policy by introducing ex-ante heterogeneity in individuals' private information … in a class of economies with dispersed information and externalities. We find that, paradoxically, welfare unambiguously …

We study a linear interaction model with asymmetric information. We first characterize the linear Bayes Nash … information structure.We use our results in a variety of applications: (i) we study the connections between incomplete information … and strategic interaction, (ii) we explain to what extent payoff environment and information structure of a economy are …

How do individuals value noisy information that guides economic decisions? In our laboratory experiment, we find that … individuals under-react to increasing the informativeness of a signal, thus undervalue high-quality information, and that they … disproportionately prefer information that may yield certainty. Both biases appear to be mainly due to non-standard belief updating. We …

In the spirit of von Neumann and Morgenstern (1947), this paper provides an axiomatic representation of information … Blackwell informativeness axiom, I show that any ordering over information can be essentially uniquely represented as …, equivalently: (a) a strictly increasing cost of information acquisition; (b) for a given prior, the expected utility from a …

, paradoxically, makes it easier for the informed party to hide her private information and offer opaque prices. (ii) Post-trade price …This paper studies how public disclosure of past trade details affects price discovery dynamics under asymmetric … information with heterogenous hedging motives. We model that an informed buyer (informed trader) sequentially trades with a series …

This article develops a Bayesian persuasion model examining a manager's incentives to gather information when the … manager can disseminate this information selectively to interested parties (“users”) and when the objectives of the manager … the information, then the manager may gather more precise information. The article identifies conditions under which a …

In an economy of interacting agents with both idiosyncratic and aggregate shocks, we examine how the information … structure determines aggregate volatility. We show that the maximal aggregate volatility is attained in a noise free information … joint distributions over actions and states that can arise in equilibrium under any information structure. This tractable …

In "Marketing Information: A Competitive Analysis,'' Sarvary and Parker (1997) (S&P) [Marketing Science, 16(1): 24 …-38] argue that, a reduction in the price of one information product can lead to an increase in demand for another information … product -- information products can be gross complements -- if they are sufficiently unreliable. We show that S&P obtain this …