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 …

to this model, chief among them credibly signaling information about product quality to a pool of small, uninformed … quality by setting a high target that is distorted above the full information optimal level. While a separating equilibrium …

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 …

We propose and experimentally test a new theory of information seeking and avoidance. Beyond the conventional desire … for information as an input to decision making, people are driven by curiosity, which is a desire to fill information gaps …, even in the absence of material benefits. People are additionally motivated to seek out information about issues they like …

We show that aversion to risk and ambiguity leads to information inertia when investors process public news about … disappears when investors are risk neutral or the news is about idiosyncratic risk. Information inertia leads to news momentum (e …

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 …

In "Marketing Information: A Competitive Analysis,'' Sarvary and Parker (1997) (S&P) [Marketing Science, 16(1): 24 …-38] argue that in part of the parameter space that they considered, a reduction in the price of one information product can lead … to an increase in demand for another information product, i.e., information products can be gross complements. This …

Before information φ arrives, market observers must be uncertain whether the stock price conditioned on φ will be … condition of efficient markets, it is shown under the mean-variance CAPM that information which makes the future value of a firm … general, information that allows better discrimination between firms leads some firms to have higher costs of capital and …

An information transaction entails the purchase of information. Formally, it consists of an information structure … together with a price. We develop an index of the appeal of information transactions, which is derived as a dual to the agent …'s preferences for information. The index of information transactions has a simple analytic characterization in terms of the relative …

We propose and experimentally test two tractable methods to incentivize the elicitation of private information … incentivize the elicitation of private information using facts, when these are not verifiable, we incentivize the respondent to … reveal her perceptions about others and use that statement to predict the subject's private information. The stronger the …