Disclosure, competition, and learning from asset prices
نویسندگان
چکیده
We study voluntary information disclosure by oligopoly firms in a setting which learn from asset prices to guide their production decisions. A firm that discloses risks losing competitive advantage over its rivals but may benefit learning valuable more informative market. Considering the financial market helps product escape nondisclosure equilibrium with low total surplus. Firms' decisions can exhibit strategic complementarity, leading multiple equilibria. endogenous behavior also gives rise two novel comparative statics: fiercer competition reduce consumer and surplus, increased noise trading improve price informativeness.
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 2021
ISSN: ['1095-7235', '0022-0531']
DOI: https://doi.org/10.1016/j.jet.2021.105331