We analyze a model in which the value of a security is comprised of multiple distinct parts and private information about these pieces is scattered among investors. We show that as information is scattered into smaller, distinctively informative pieces, endogenous information acquisition...

We consider the market for a risky asset with heterogeneous valuations. Private information that agents have about their own valuation is reflected in the equilibrium price. We study the learning externalities that arise in this setting, and in particular their implications for price...

This paper analyzes the informative trading of professional money managers within a rational expectations equilibrium model in which managers care about their performance relative to their peer group. We find that the existence of uninformed managers causes informed managers with relative...

We study the optimal disclosure policy of a firm that wishes to maximize its expected stock price in the classic setting in which its stock is traded by risk-averse investors and noise traders. We find that the optimal disclosure policy is imprecise and leads to skewed posterior beliefs. This...

A principal has to take a binary decision. She relies on information privately held by a completely biased agent. The principal cannot incentivize with transfers but can learn the agent's information at a cost. Additionally, the principal privately observes a signal correlated with the agent's...

This paper reconsiders the general informed principal model with unilateral private information and common values. First, it identifies some fundamental properties of the Rothschild-Stiglitz-Wilson (RSW) allocation (i.e., the undominated for the principal allocation within the set of incentive...

We analyze how reputation concerns for expertise of a partially informed decision maker affect her ability to extract information from reputation-concerned advisors. Very high reputation concerns of the decision maker destroy her incentives to seek advice. Yet, when such concerns are not high...

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...