New technologies such as product simulators and virtual reality now allow firms to provide realistic product usage experiences and reduce buyer uncertainty about product quality. We argue that today's firms should view product design and investments to reduce buyer uncertainty as an integrated...

This paper studies the incentive of a long run seller to disclose past offers when trading with a sequence of short-run buyers. Compared with the models of mandatory disclosure or mandatory non-disclosure, there is a new set of equilibria generated by allowing flexibility in the disclosure...

This paper studies the incentive of a long run seller to disclose past offers when trading with a sequence of short-run buyers. Compared with the models of mandatory disclosure or mandatory non-disclosure, there is a new set of equilibria generated by allowing flexibility in the disclosure...

I study the impact of informed trading on voluntary corporate disclosure in the presence of two frictions: cost of disclosure and value of manager's informedness. In the absence of both frictions, informed trading has no impact on disclosure even when traders are not certain whether the manager...

Sophisticated financial market participants frequently choose to disclose private information to the public—a phenomenon inconsistent with most theories of speculative trading. In this paper, we propose and test a model to bridge this gap. We show that when a speculator cares about both the...