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Author (down) Carrasco, J.A.; Carrasco, M.; Yanez, R.
Title An inexpert expert Type
Year 2022 Publication Applied Economics Letters Abbreviated Journal Appl. Econ. Lett.
Volume Early Access Issue Pages
Keywords Cheap talk; bias; informativeness; noise
Abstract We explore strategic information transmission when there is noise at the observation stage, when an expert observes signals, before he advises a policymaker. That is, the expert might be inexpert. We account for the fact that his signals might be totally uninformative, which is commonly known by players. We find that this inexpertise translates into a greater preference misalignment between players and that this yields a less informative equilibrium. We show that our results follow from the fact that the strategic effect of noise – the welfare change exclusive due to changes in the equilibrium partition – is always negative. Numerical simulations show that noise might be beneficial if the policymaker openly disagrees about noise chances. This makes the point that whether noise is beneficial or not crucially depends on how early in the game it arises, and also whether noise chances are commonly known by players or not.
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Corporate Author Thesis
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Language Summary Language Original Title
Series Editor Series Title Abbreviated Series Title
Series Volume Series Issue Edition
ISSN 1350-4851 ISBN Medium
Area Expedition Conference
Notes WOS:000827531200001 Approved
Call Number UAI @ alexi.delcanto @ Serial 1618
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Author (down) Carrasco, J.A..; Yanez, R.
Title Sequential search and firm prominence Type
Year 2022 Publication Economic Theory Abbreviated Journal Econ. Theory
Volume 74 Issue 1 Pages 209-233
Keywords EQUILIBRIUM PRICE DISPERSION; CONSUMER SEARCH; INFORMATION; ECONOMICS; MODEL
Abstract We explore the role of prominence in equilibrium pricing in markets where search is sequential and random. Our model key feature is that more prominent firms are more likely to be sampled first. In contrast to ordered-search models, we find that more prominent firms inherit larger but less elastic demands, and as such have incentives to post larger prices. However, they might post lower prices but still charge higher markups than less prominent competitors only if they are also sufficiently more efficient. Our results suggest that when search is sequential, the role of prominence depends on whether it modifies the order or just the chances with which firms are sampled.
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Corporate Author Thesis
Publisher Place of Publication Editor
Language Summary Language Original Title
Series Editor Series Title Abbreviated Series Title
Series Volume Series Issue Edition
ISSN 0938-2259 ISBN Medium
Area Expedition Conference
Notes WOS:000647491800002 Approved
Call Number UAI @ alexi.delcanto @ Serial 1373
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