Groundwater use under incomplete information

Bargaining under Incomplete Information

Skill Formation under Incomplete Information

We consider an economic model of child development with multiple stages. Due to incomplete information, parents are not able to tailor their investments to their child's type when the child is young. We show that incomplete information weakens the importance of early investments in children when inter-stage investments are easily substitutable, but strengthens them when substitution is difficul...

Hedging Demands under Incomplete Information

I present a model of consumption and portfolio choice under market incompleteness and imperfect information regarding the investment opportunity set. I solve analytically the consumption and portfolio choice problem for an investor learning about the true state of the economy. When prices are the only observations, the previously unspanned state variables are spanned by the market securities un...

Utilitarian Cooperation under Incomplete Information∗

A theory of cooperative choice under incomplete information is developed in which agents possess private information at the time of contracting. It is assumed that the group of cooperating agents has agreed on a utilitarian “standard of fairness” (group preference ordering) governing choices under complete information. The task is to extend this standard to choices whose consequences depend on ...

Investment Timing Under Incomplete Information

We study the decision of when to invest in an indivisible project whose value is perfectly observable but driven by a parameter that is unknown to the decision maker ex ante. This problem is equivalent to an optimal stopping problem for a bivariate Markov process. Using filtering and martingale techniques, we show that the optimal investment region is characterised by a continuous and non-decre...