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In games with strategic complementarities, public information about the state of the world has a larger impact on equilibrium actions than private information of the same precision, because the former is more informative about the likely behavior of others. This may lead to welfare-reducing...
Persistent link: https://www.econbiz.de/10013316251
Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability...
Persistent link: https://www.econbiz.de/10013318794
We assume that students can acquire a wage premium, thanks to studies, and form a rational expectation of their future earnings, which depends on personal ability. Students receive a private, noisy signal of their ability, and universities can condition admission decisions on the results of...
Persistent link: https://www.econbiz.de/10013319262
We study the general problem of Bayesian persuasion (optimal information design) with continuous actions and continuous state space in arbitrary dimensions. First, we show that with a finite signal space, the optimal information design is always given by a partition. Second, we take the limit of...
Persistent link: https://www.econbiz.de/10012487719
We study the delegation problem between a principal and an agent, who not only has better information about the performance of the available actions but also has superior awareness of the set of actions that are actually feasible. The agent decides which of the available actions to reveal and...
Persistent link: https://www.econbiz.de/10012418278
receiver's inference about their type. We reestablish revenue equivalence when bidders' signaling concerns are linear, and the … auction makes participation observable via an entry fee. With convex signaling concerns, optimal auctions are fully … transparent: every standard auction, which reveals all bids yields maximal revenue. With concave signaling concerns there is no …
Persistent link: https://www.econbiz.de/10012420461
This paper studies the implications of agents signaling their moral type in a lying game. In the theoretical analysis …, a signaling motive emerges where agents dislike being suspected of lying and where some types of liars are more …
Persistent link: https://www.econbiz.de/10012500269
minority leader, signaling incentives make secession the unique equilibrium outcome, whether mutually advantageous compromises … their borders. -- Constitutional commitment ; secession ; signaling ; regional redistribution …
Persistent link: https://www.econbiz.de/10008699712
We study a symmetric private value auction with signaling, in which the auction outcome is used by an outside observer … clock, affects signaling incentives differently in both auction formats, and thereby also the bidders’ incentives to overbid …
Persistent link: https://www.econbiz.de/10012305849
In this paper, we consider a dynamic signaling model of an R&D market in which a researcher can choose either a safe …
Persistent link: https://www.econbiz.de/10011623886