Information Provision and Postgraduate Studies

Information Provision and Price Competition

Two sellers with ex-ante identical products, whose qualities can be either high or low, first choose a binary information structure, modeled as the probability that the signal reveals the state. After the buyer independently draws one private signal from each information structure, the sellers then each choose a price in the second stage. We identify two equilibria in information structures, a ...

Asymmetric Information and Liquidity Provision

The presence of information asymmetry increases the probability that a potential predator will provide liquidity rather than engaging in predatory trading during liquidation by a distressed trader. More information asymmetry is associated with lower expected losses from liquidation for the distressed trader in illiquid markets. There is a negative correlation between the degree of information a...

Optimal dynamic information provision

We study a dynamic model of information provision. A state of nature evolves according to a Markov chain. An informed advisor decides how much information to provide to an uninformed decision maker, so as to influence his short-term decisions. We deal with a stylized class of situations, in which the decision maker has a risky action and a safe action, and the payoff to the advisor only depends...

Competing Through Information Provision∗

This paper studies the symmetric equilibria of a two-buyer, two-seller model of directed search in which sellers commit to information provision. More informed buyers have better differentiated private valuations and extract higher rents from trade. I establish how the characteristics of exogenously fixed sale mechanisms determine equilibrium information provision and show that competition gene...

Postgraduate Studies in the Field of HCI