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PKP Metadata Items |
Metadata for this document |
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| 1. |
Title |
Title of document |
Optimal information disclosure and market outcomes |
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| 2. |
Creator |
Author's name, affiliation |
Hugo Hopenhayn; Department of Economics, UCLA |
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| 2. |
Creator |
Author's name, affiliation |
Maryam Saeedi; Tepper Business School, Carnegie Mellon University |
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| 3. |
Subject |
Subject(s) |
Adverse selection, information design, consumer surplus, producer surplus |
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| 3. |
Subject |
Subject classification |
D21, D47, D60, D82, L11 |
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| 4. |
Description |
Abstract |
This paper addresses two central questions in markets with adverse selection: How does information impact the welfare of market participants (sellers and buyers)? Also, relatedly, what is the optimal information disclosure policy and how is it affected by the planner’s relative welfare weight on sellers’ surplus versus consumers’ surplus? We find that as a result of improved information, prices become more strongly associated with the true quality of sellers and thus more dispersed. This will result in higher total surplus. Furthermore, we find that better information has opposing welfare effects on consumers and producers that could lead to limited disclosure depending on the social objective and market characteristics. |
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| 5. |
Publisher |
Organizing agency, location |
Econometric Society |
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| 6. |
Contributor |
Sponsor(s) |
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| 7. |
Date |
(YYYY-MM-DD) |
2023-11-09 |
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| 8. |
Type |
Status & genre |
Peer-reviewed Article |
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| 8. |
Type |
Type |
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| 9. |
Format |
File format |
pdf
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| 10. |
Identifier |
Universal Resource Indicator |
https://econtheory.org/ojs/index.php/te/article/view/5104 |
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| 11. |
Source |
Journal/conference title; vol., no. (year) |
Theoretical Economics; Volume 18, Number 4 (November 2023) |
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| 12. |
Language |
English=en |
en |
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| 15. |
Rights |
Copyright and permissions |
Authors who publish in Theoretical Economics will release their articles under the Creative Commons Attribution-NonCommercial license. This license allows anyone to copy and distribute the article for non-commercial purposes provided that appropriate attribution is given. |