We investigate strategic information transmission with communication error, or noise. Our main finding is that adding noise can improve welfare. With quadratic preferences and a uniform type distribution, welfare can be raised for almost every bias level by introducing a sufficiently small...

Cheap talk models provide a strategic analysis of information transmission between the expert and the decision maker when their preferences are not perfectly aligned. Although the majority of these models analyze the case of a single decision maker, in many important settings the decision-making...

The institution of judicial review is an important mechanism of holding the government legally accountable, nevertheless questions remain about its proper role in a separation of powers system. This article analyzes the effect of judicial review on the policy-making process from an expertise...

We investigate strategic information transmission with communication error, or noise. Our main finding is that adding noise can improve welfare. With quadratic preferences and a uniform type distribution, welfare can be raised for almost every bias level by introducing a sufficiently small...

Concern about asymmetric information in markets for consumer goods and services has focused on product attribute information. We highlight the importance of another category of information - product use information. In important markets, sellers have better information about how a consumer will...

There are many laws which require sellers to disclose private information about the quality of their products. But the theoretical justification for these laws is not obvious: economic theory predicts that a seller will voluntarily disclose such quality information, however unfavorable, as long...

In this paper we compare two different approaches to modeling unawareness: the object-based approach of Board and Chung (2007) and the subjective-state-space approach of Heifetz, Meier and Schipper (2006).

Concern about asymmetric information in markets for consumer goods and services has focused on product-attribute information. We highlight the importance of another category of information--product-use information. In important markets, sellers have better information about how a consumer will...

We examine some of the factors that might influence the quality of information produced in discussion groups on the internet, such as USENET and the WELL. In particular, we look at the impact of various different pricing structures, and compare regimes in which anonymity is enforced with regimes...