Has Local Informational Advantage Disappeared?

Has Salary Discrimination Really Disappeared from Major League Baseball?

One of the most thoroughly studied aspects of the labor market is that of wage discrimination. Especially since the passage of the Equal Pay Act (1963) and the Civil Rights Act (1964), a substantial body of research has addressed the question of the extent to which minorities receive the “equal pay for equal work” that the acts set forth as a fundamental goal. Perhaps the most serious conceptua...

Private value perturbations and informational advantage in common value auctions

We analyze the value of being better informed than one’s rival in a two bidder, second price common value auction. In order to do so, we must pare down the continuum of equilibria that typically exists in this setting. We propose selecting an equilibrium that is robust to perturbing the common value of the object with small private value components. Under this selection, we show that having bet...

Masker-first advantage for cues in informational masking.

The detectability of a pure-tone signal may be reduced by adding a small number of randomly drawn masker tones remote from the signal frequency, an effect attributed to informational masking. A pretrial cue consisting of either the upcoming signal or masker releases informational masking, but a pretrial cue of the signal-plus-masker stimulus does not. In these experiments the relative potency o...

Valuing Dealers’ Informational Advantage: A Study of Canadian Treasury Auctions∗

In many financial markets, dealers have the advantage of observing the orders of their customers. To quantify the economic benefit that dealers derive from this advantage, we study detailed data from Canadian treasury auctions, where dealers observe customer bids while preparing their own bids. In this setting, dealers can use information on customer bids to learn about (i) competition, i.e. th...

Images of the HQ-subsidiary relationship: Has the country-of-origin effect disappeared?