We examine communication in two-player games that represent simplified financial markets with asymmetric information. In each game, a seller knows the true quality of an asset while the potential buyer knows only the ex ante quality distribution. First we document the degree of adverse selection...

Prediction markets are markets for contracts that yield payments based on the outcome of an uncertain future event, such as a presidential election. Using these markets as forecasting tools could substantially improve decision making in the private and public sectors. We argue that U.S....

We examine communication in two-player games that represent simplified financial markets with asymmetric information. In each game, a seller knows the true quality of an asset while the potential buyer knows only the ex ante quality distribution. First we document the degree of adverse selection...