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Information Flows Among Rivals and Corporate Investment

Bernard, Darren - 2020

Using a novel pairwise measure of firms' acquisition of rivals' disclosures, we show that investment opportunities … their products. Our results suggest that rivals' public information, far from being unusable, helps facilitate investment … mechanism that could partly underlie the emerging literature on peer investment effects …

Persistent link: https://www.econbiz.de/10012848993

Trust Building in Credence Goods Markets

Fong, Yuk‐Fai; Meng, Xiaoxuan - 2018

We study trust building in credence goods markets in a dynamic setting. An extreme lemon problem arises in the one-shot game and results in no trade. In the repeated game, an expert's honesty is monitored through consumers' rejection of his recommendations. We characterize the optimal...

Persistent link: https://www.econbiz.de/10012932973

Monetary policy under imperfect information and consumer confidence

Brenneisen, Jan-Niklas - 2020 - This version: July 23, 2020.

Although it is generally accepted that consumer confidence measures are informative signals about the state of the … imperfectly informed central banks include confidence measures in their information set. The beneficial welfare effects are …

Persistent link: https://www.econbiz.de/10012269096

Anxiety, overconfidence, and excessive risk taking

Eisenbach, Thomas M.; Schmalz, Martin C. - 2015

We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more risk-averse to imminent than to distant...

Persistent link: https://www.econbiz.de/10010482950

It's not my fault! : self-confidence and experimentation

Hestermann, Nina; Le Yaouanq, Yves - 2018 - Current draft: October 8, 2018

variable environments and revise their self-confidence over time. In contrast, underconfident decision-makers might be trapped …

Persistent link: https://www.econbiz.de/10011930663

Overconfidence?

Benoit, Jean-Pierre; Dubra, Juan - 2009

Many studies have shown that people display an apparent overconfidence. In particular, it is common for a majority of people to describe themselves as better than average. The literature takes for granted that this better-than-average effect is problematic. We argue, however, that, even...

Persistent link: https://www.econbiz.de/10014220605

Persistent overconfidence and biased memory : evidence from managers

Huffman, David; Raymond, Collin; Shvets, Julia - 2023

A long-standing puzzle is how overconfidence can persist in settings characterized by repeated feedback. This paper studies managers who participate repeatedly in a high-powered tournament incentive system, learning relative performance each time. Using reduced form and structural methods we...

Persistent link: https://www.econbiz.de/10014311540

The role of information in building reputation in an investment/trust game

Lunawat, Radhika - In: European accounting review 22 (2013) 3, pp. 513-532

Persistent link: https://www.econbiz.de/10009792076

The Role of Information in Building Reputation in an Investment/Trust Game

Lunawat, Radhika - 2012

This article analyzes the role of information in building reputation in an investment/trust game. The model allows for …

Persistent link: https://www.econbiz.de/10013098371

Public and private learning from prices, strategic substitutability and complementarity, and equilibrium multiplicity

Manzano Tovar, Carolina; Vives, Xavier - 2010

We study a general static noisy rational expectations model, where investors have private information about asset payoffs, with common and private components, and about their own exposure to an aggregate risk factor, and derive conditions for existence and uniqueness (or multiplicity) of...

Persistent link: https://www.econbiz.de/10003994517