This paper studies an information design problem of a retailer in a two-tier supply chain that procures a single type of product from a supplier. The supplier needs to decide on a production quantity by balancing the shortage and the excess inventory holding costs with respect to the...

SummaryThis paper studies the impact of unreliable information sources on the decision process under ambiguity. Using a modified Ellsberg framework, it compares two types of agents: one is a Savage expected utility maximizer and the other a Neo-Choquet-type expected utility maximizer. This...

We isolate frictions at the acquisition and integration stages of information processing by leveraging a policy that resulted in users of the Securities and Exchange Commission's online repository of company reports failing to consult the disclosures they had requested. Exploiting this plausible...

We find empirical evidence suggesting that, over time, the increased stock market participation of investors has decreased the relevance of firms' accounting information. This negative relation is apparent primarily in the short term (i.e., over two consecutive quarters), unidirectionally...