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We propose a costly information acquisition model to explore the mechanism of the process from the strategies of information acquisition to price informativeness. The profit-seeking characteristics of free-access market environments hinder the transmission channel of high-precision information...
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In capital markets, information disclosure is required to reduce information asymmetry among investors. On the other hand, information held by some market participants is useful for firms' decision making, and the feedback effect, in which information is obtained from prices and used for...
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Much of economics assumes that higher incentives increase participation in a transaction only because they exceed more … costly, higher incentives also change reservation prices to further increase participation. A higher incentive makes people …. Hence, incentives change not only what people choose, but also what they believe their choices entail. This result informs …
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durables. Who opts into the transaction when given such incentives? We show theoretically and experimentally that increasing …
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