We present a model of intergenerational transmission of pro-social values in which parents have information about relevant characteristics of society that is not directly available to their children. Differently from existing models of cultural transmission of values (such as [Bisin and Verdier,...

By assuming that fundamentals matter, this article builds a discounted cash flow (DCF) model (which is assumed to be commonly used by fundamentalists) where the determination of the fundamental is affected by variables proxying for the unobserved firm quality and for the value of its real option...

We analyze trade between a perfectly informed price setting party (seller) and an imperfectly informed price taker (buyer). Differently from most of the literature, we focus on the case in which, under full information, it would be inefficient to trade goods of sufficiently poor quality. We show...

The bulk of information and communication technology is made of weightless, implementable, and infinitely reproducible knowledge products (such as software and databases). These products are transferred by telephone lines, accessed through internet hosts, and processed through personal...