The purpose of this paper is to investigate the micro foundations of how non-experts' (or general public) form inflation expectations. Using a unique dataset we investigate the range of near rational inflation expectations. An important contribution to understanding how non-experts form their...

We study information acquisition and dynamic withdrawal decisions when a spreading rumor exposes a solvent bank to a run. Uncertainty about the bank's liquidity and potential failure motivates depositors who hear the rumor to acquire additional noisy signals. Depositors with less informative...

In this paper I study the information acquisition process in a simple asset pricing model with heterogeneous beliefs about future prices. This is instrumental to investigate the effects of financial literacy on market volatility. I posit that financial literacy affects the cost of acquiring...

A principal needs to make a decision. An expert is able to supply information that is helpful to the principal, but only by exerting effort, which is costly. The principal can incentivize the expert to put in effort by paying him a reward based on his reported information and on the true state...