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Reputation in the presence of noisy exogenous learning

Hu, Ju - In: Journal of Economic Theory 153 (2014) C, pp. 64-73

This note extends Wiseman [6] to more general reputation games with exogenous learning. Using Gossner's [4] relative …

Persistent link: https://www.econbiz.de/10010930785

Seller Reputation and Trust in Pre-Trade Communication

Jullien, Bruno; Park, In-Uck - Centre for Market and Public Organisation (CMPO), … - 2011

quality items. In this equilibrium a seller's value function strictly increases in reputation and a seller's type is revealed … within finite time. The analysis highlights a new reputation mechanism based on an endogenous complementarity the market … places between a seller's honesty in pre-trade communication (trust) and his/her ability to deliver good quality (reputation …

Persistent link: https://www.econbiz.de/10009370152

Reputation in the Presence of Noisy Exogenous Learning

Hu, Ju - Department of Economics, University of Pennsylvania - 2013

This paper studies the reputation effect in which a long-lived player faces a sequence of uninformed short …

Persistent link: https://www.econbiz.de/10010608020

Audit contracts and reputation

Portilla, Yolanda - Departamento de Economía, Universidad Carlos III de Madrid - 2009

management and the audit effort are decreasing over time because the incentives to build a reputation also decline for both …

Persistent link: https://www.econbiz.de/10005196631

Information acquisition and learning from prices over the business cycle

Mäkinen, Taneli; Ohl, Björn - 2012

We study firms' incentives to acquire costly information in booms and recessions to understand the role of endogenous information in explaining asymmetric business cycles. When the economy has been in a boom in the previous period, and firms enter the current period with an optimistic belief,...

Persistent link: https://www.econbiz.de/10009501052

A signaling model of university selection

Anić, Ivan; Božin, Vladimir; Uroševic, Branko - 2016

We propose a signaling model of student enrollment dynamics based on probabilities of completion of studies, under different rationality assumptions. There are two types of students and two schools. School of graduation serves as a signal of student productivity to prospective employers. The...

Persistent link: https://www.econbiz.de/10011421585

The curse of knowledge increases self-selection into competition : experimental evidence

Danz, David - 2014 - Rev.

The psychology literature provides ample evidence that people have difficulties taking the perspective of less-informed others. This paper presents a controlled experiment showing that this "curse of knowledge" can cause comparative overconfidence and overentry into competition. In a broader...

Persistent link: https://www.econbiz.de/10010403249

The Simple Analytics of Price Signaling Quality

Mirman, Leonard J. - 2012

We present a diagrammatic and step-by-step analysis of price signaling quality. Because quality is a continuum on the real positive line, out-of-equilibrium beliefs need not be specified, i.e., every positive price is a positive outcome in equilibrium. We first study the behavior of the monopoly...

Persistent link: https://www.econbiz.de/10013115026

Market Power, Fully Revealing Prices and Welfare

Mueller-Frank, Manuel - 2012

This paper considers a dynamic duopoly market with strategic, price setting firms and an infinite set of fully rational, privately informed consumers who enter the market sequentially. I show that there exists a sequential equilibrium in which prices converge to their realized product qualities...

Persistent link: https://www.econbiz.de/10013099382

Noisy Signaling in Monopoly

Mirman, Leonard J. - 2013

We study the informational role of prices in a stochastic environment. We provide a closed-form solution of the monopoly problem when the price imperfectly signals quality to the uninformed buyers. We then study the effect of noise on output, market price, information flows, and expected...

Persistent link: https://www.econbiz.de/10013093809