In this paper, I examine the impact of ambiguity (Knightian uncertainty), alongside that of risk, on firms’ voluntary disclosure decisions. I confirm the well-known result that an increase in risk— uncertainty over outcomes—is associated with an increase in management guidance (earnings...

The aim of this paper is to study the optimal time for the individual to join an unemployment insurance scheme which is intended to protect workers against the consequences of job loss and to encourage the unemployed workers to find a new job as early as possible. The wage dynamic is described...

We characterize the optimal design for asset-backed securities in common-value auctions with endogenous entry. More information-sensitive securities attract more entrance, which yields the firm higher expected revenue and further leads to less underpricing upon entry. We show that the weight of...

A seller faces a consumer with an uncertain value for the product. The seller has imperfect private information about the value and requests additional data to set the price. The consumer can decline any request. The consumer's willingness to provide data depends on his belief about the seller's...

This paper studies a model in which nominal exchange rate is determined by asymmetric information. Within a two-country two-currency search-theoretic model, buyers have complete information, while sellers have incomplete information regarding the real value of foreign currencies in decentralized...

The paper tries to investigate the existence of asymmetric information and adverse selection problem in the Islamic banking sector. Primary and secondary data has been collected from 35 banks in 16 developing countries for 8 years period. The data collection procedures include survey,...

If investors are differently informed about the payoff of market-traded securities, then the traditional market portfolio is not a relevant benchmark for testing the CAPM. Each investor appraises expected returns and builds his optimal portfolio conditionally on his information. Which proxy to...

We study the impact of access regulation in a telecommunications market on an entrant's decision whether to invest in a network or ask for access when the regulator cannot observe its potential demand. Since the entrant has incentives to not compete vigorously right after entry in order to...

This paper studies competitive market shutdowns due to adverse selection, where sellers post nonexclusive menus of contracts. We first show that the presence of the worst type of agents (moldy lemons) causes markets to fail only if their mass is sufficiently large. We then show that a small mass...