We present a model of persuasive signalling, where a privately-informed sender selects from a class of signals with different precision to persuade a receiver to take one of two actions. The sender's information could be either favourable or unfavourable. The receiver observes both the sender's...

We conduct an experiment on a two-player infinitely repeated favor exchange game under incomplete information. In the stage game, each player has to decide whether to provide a favor to the other player. A favor generates a fixed benefit for the recipient and a cost for the provider, which can...

We analyze a psychologically-based model of voter turnout in an election with common value and uncertainty. Our model yields distinctive comparative statics results. First, an increase in the proportion of informed citizens may cause the winning margin for the right candidate to either rise or...