This paper studies sequential Bayesian persuasion games with multiple senders. We provide a tractable characterization of equilibrium outcomes. We apply the model to study how the structure of consultations affects information revelation. Adding a sender who moves first cannot reduce...

Many everyday activities are habitual. Among the most common human activities is communication. If people primarily communicate in a common-interests environment, they may form habits of truth-telling and believing messages. If they primarily communicate in a conflicting-interests environment,...

We study the role of beliefs about experts' honesty in a market for credence goods with second opinions and overtreatment. Experts are honest or dishonest. The population shares a common belief about the share of honest experts, which may be incorrect. We characterize the belief that maximizes...

Prices usually adjust much faster when costs increase than when costs decrease. The mechanism driving this Rockets-and-Feathers phenomenon is not well understood despite of ample empirical evidence for its existence.We use simple experimental markets with and without consumer search and either...

We implement a simple two-shop search model in the laboratory with the aim of testing if consumers behave differently in equivalent situations, where prices are displayed either as net prices or as gross prices with discounts. We compare search behavior in base treatments (where both shops post...

Consumers often complain that retail prices respond faster to increases in wholesale prices than to decreases. Despite many empirical studies confirming this "Rockets-and-Feathers" phenomenon for different industries, the mechanism driving it is not well understood. In this paper, we show that,...

I study a model of oligopolistic competition in which consumers search for prices, but have no idea about the underlying price distribution. Consumers' behaviour satisfies four consistency requirements such that beliefs about the underlying distribution maximize Shannon entropy. I derive the...

This paper characterizes equilibrium persuasion through selective disclosure based on the personal information that senders acquire about the preferences and orientations of receivers, with applications to strategic marketing and campaigning. We derive positive and normative implications...

A physician performs two tasks: making diagnoses and determining treatments. To reduce medical error, residents are supposed to consult their supervisors when they face uncommon circumstances. However, recent research shows that residents are reluctant to do so. This paper presents a model that...

Recent theories suggest that consumers' search efforts are a function of prices and prices changes, respectively. This may help to explain the 'rockets and feathers' phenomenon often assigned to collusion – prices rise like rockets when costs increase and fall like feathers when costs...