This paper performs a welfare analysis of economies with private information when public information is endogenously … in information). The reason is that the market in general does not internalize the informational externality when public … statistics (e.g., prices) convey information. Under strategic substitutability, equilibrium prices will tend to convey too little …

This paper studies the social value of public information in environments without common knowledge of the data …

This paper performs a welfare analysis of economies with private information when public information is endogenously … in information). The reason is that the market in general does not internalize the informational externality when public … statistics (e.g., prices) convey information. Under strategic substitutability, equilibrium prices will tend to convey too little …

In an information cascade experiment participants are confronted with artificial predecessors predicting in line with … coinciding predictions of predecessors are observed, regardless of whether additional information is revealed by these … is not recognized. -- information cascade ; Bayes' Rule ; decision under risk and uncertainty ; experimental economics …

complementarity or substitutability, and heterogenous information. First, we characterize the equilibrium use of information …; complementarity heightens the sensitivity of equilibrium actions to public information, raising aggregate volatility, whereas … substitutability heightens the sensitivity to private information, cross-sectional dispersion. Next, we define and characterize an …

An entrepreneur contracts with a consultant, who is protected by limited liability, to supply information about the … probability than a bad one. The entrepreneur makes an upfront payment that the consultant can either invest in information … entrepreneurs so long as his referrals remain high. The principal under-utilizes information in settings (i) and (ii). In setting …

conclude that it might be better to reduce the precision of public signals or entirely withhold information. This paper shows … that public information should always be provided with maximum precision, but under certain conditions not to all agents …

additional information. In this setting, without the persuader's information, a version of the Condorcet Jury Theorem holds …. Persuasion does not require detailed knowledge of the voters' private information and preferences: the same additional … information is effective across environments. The results require almost no commitment power by the persuader. Finally, the …

An entrepreneur contracts with a consultant, who is protected by limited liability, to supply information about the … probability than a bad one. The entrepreneur makes an upfront payment that the consultant can either invest in information … entrepreneurs so long as his informal referrals remain high. The principal finds it optimal to under-utilize information if she uses …