The paper enriches a standard signaling model of education with issues of social distance defined over educational achievements. More specifically it considers the effects that the presence of conformist and status seeking individuals has on educational dynamics. Under very reasonable...

This paper studies how a signaling motive becomes a cause of excessive disobedience and an obstacle to authority in a dynamic relationship. It shows that an agent has incentive to disobey a principal's order so that the principal adjusts the future exercise of authority in the agent's favor. The...

We study a model of strategic persuasion based on the theory of cheap talk, in which a better-informed agent manipulates two decision-makers' joint decision on alternative proposals. With the heterogeneity of two decision-makers' value of the outside option, only the decision-maker with the...

This paper studies repeated communication regarding a multidimensional collective decision in a large population. When preferences coincide but beliefs about the consequences of the various decisions diverge, it is shown, under some specific assumptions, that public communication causes the...

The paper studies information processing imperfections in a fully rational decision-making network. It is shown that imperfect information transmission and imperfect information acquisition in a multi-stage selection game yield information overload. The paper analyses the mechanisms responsible...

In this paper we assess whether forward guidance for monetary policy regarding the future path of interest rates is desirable. We distinguish between two cases where forward guidance for monetary policy may be helpful. First, forward guidance may reveal private information of the central bank....

The paper studies information processing imperfections in a fully rational decision-making network. It is shown that imperfect information transmission and imperfect information acquisition in a multi-stage selection game yield information overload. The paper analyses the mechanisms responsible...

In this paper we assess whether forward guidance for monetary policy regarding the future path of interest rates is desirable. We distinguish between two cases where forward guidance for monetary policy may be helpful. First, forward guidance may reveal private information of the central bank....

Army mobilization, testing missiles, staging demonstrations, sexual violence, or even terrorist actions can all be interpreted as signals of military resolve or strength by a belligerent party. If so, what can its opponent infer from this sort of actions? This paper studies this question in...

This paper provides a simple political agency model to explain the effect of political alignment between different tiers of government on intergovernmental grants and election outcomes. Key features of the model are: (i) rational voters interpret public good provision as a signal of incumbent...