Global supply chains enhance value, but are subject to governance problems and encourage evasive practices that deter sustainability, especially in developing countries. This article proposes that the precontractual environment, where parties are interested in trade but have not yet negotiated...

Network externality is a prominent feature of increasingly many products: the marginal payoff of one's consumption increases as his neighbors consume more. In- formation of network structure is important to the seller, but is often privately known to the buyers. We model a monopoly's optimal...

Sellers often have the power to censor the reviews of their products. We explore the effect of these censorship policies in markets where some consumers are unaware of possible censorship. We find that if the share of such “naive” consumers is not too large, then rational consumers treat any...

We study how employers and job-seekers respond to credible information on skills that are difficult to observe, and how this affects matching in the labor market. To do so, we experimentally vary whether certificates on workers' non-cognitive skills are disclosed to both sides of the market...

We quantify the widespread and significant economic impact of first impressions and confirmation bias in the financial advice market. We use a theoretical learning model and new experimental data to measure how these biases can evolve over time and change clients' willingness to pay advisers....

Project selection decisions are complex because they must consider not only financial returns, project risk, and fit with strategy, but also competitive circumstances. A rival's project development efforts provide two pieces of information: a market rivalry signal, which indicates potentially...

There is a continuum of agents, each of whom trades a divisible asset via demand function competition. Individual valuations are determined by multiple idiosyncratic and common shocks, regarding which the agent observes multi-dimensional signals. The only assumptions are that the signals are...

I study the role of financial incentives as signals of job characteristics when these are unknown to potential applicants. To this end, I create experimental variation in expected earnings and use that to estimate the effect of financial incentives on candidates' perception of a brand-new...

Army mobilization, testing missiles, staging demonstrations, sexual violence, or even terrorist actions can all be interpreted as signals of military resolve or strength by a belligerent party. If so, what can its opponent infer from this sort of actions? This paper studies this question in...

This study investigated price transmission and signals of the three major urban cowpea markets and their respective adjunct rural market across the zones and value chain in Niger state of Nigeria using monthly time series data spanning from January 2003 to December 2016. The selected urban...