I show how irrational ideas and rumors can drive asset prices - not because anyone believes them, but because they are commonly known without being common knowledge. The phenomenon is driven by short-term market participants who are well-informed about the information that others have, and who...

This paper extends the classical search framework and allows the decision-maker to choose information endogenously and flexibly. We consider a problem in which the manager chooses the best among two ex ante identical candidates. The manager learns the qualities of candidates sequentially and can...

This paper shows that the principal can strictly benefit from delegating a decision to an agent whose opinion differs from that of the principal. We consider a ``delegated expertise'' problem in which the agent has an advantage in information acquisition relative to the principal, as opposed to...

I show how irrational ideas and rumors can drive asset prices - not because anyone believes them, but because they are commonly known without being common knowledge. The phenomenon is driven by short-term market participants who are well-informed about the information that others have, and who...