The value of ignorance
Article Abstract:
The likelihood of remaining ignorant in the case of two states of nature has a positive strategic value for agents. Despite the reality that the agent's private information assures earning a positive rent in equilibrium, the agent may choose to remain uninformed. The likelihood for ignorance presents an additional range of informational asymmetry. Since a poor information structure produces strategic advantages, an equilibrium in which the agent is excellently informed will not occur, even if additional information is costless at the margin.
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1998
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Comparing four models of aggregate fluctuations due to self-fulfilling expectations
Article Abstract:
A comparative study of four equilibrium business cycle models is presented. The four models' common feature of increasing returns to scale production technologies permitted aggregate fluctuations brought about by self-fulfilling expectations. The four models are calibrated and presented in a unified framework because the minimum markup required to generate endogenous fluctuations as well as the dynamic properties of expectations driven cycles will depend on the specific parameterization adopted.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1997
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On monitoring and collusion in hierarchies
Article Abstract:
Collusion and the role of information are analyzed in a model using hard information.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2000
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