We examine the welfare costs of informed trade in a new sequential trade model with elastic uninformed traders. Welfare losses occur when the liquidity costs of executing a trade exceed the potential gains from the trade. With long-lived private information, more informed traders lead to better...

In this paper a persuasion game is analyzed, where "persuasion" is understood as an interested party's acquisition and transmission of information to a decision maker. The model allows for many interpretations, e.g., political lobbying or influence activities in organizations. Individuals' ex...

This paper outlines the case for using the Marginal Value of Public Funds (MVPF) in empirical welfare analysis. It compares the MVPF approach with more traditional welfare metrics such as the Cost-Benefit Ratio and the Net Social Benefits criterion. It outlines the advantages of the MVPF...