Asymmetric information is a classic example of market failure that undermines the efficiency associated with perfectly competitive market outcomes: the “lemons” market. Credible certification, that substantiates unobservable characteristics of products that consumers value, is often...

In economic models in which agents are asymmetrically informed about the structural parameters of the economy the acquisition or manipulation of information plays a crucial role. The incentive to affect the flow of information is especially important in models in which choice variables, and...

We introduce learning in a Brock-Mirman environment and study the effect of risk generated by the planner's econometric activity on optimal consumption and investment. Here, learning introduces two sources of risk about future payoffs: structural uncertainty and uncertainty from the anticipation...