In their seminal paper Grossman and Shapiro (1984) find that informative advertising is socially excessive in an oligopoly (entry is also socially excessive). However, to derive the results, it was assumed that all consumers receive at least one ad, i.e., advertising does not have a demand...

Large firms often negotiate wage rates with labor unions. When they do so, an ex-ante agreement to share information about parameters should make it more likely that they will be able to reach an agreement and capture the gains from trade. However, if the firm refuses to share information, the...

We study firms' incentives to acquire private information in a setting where subsequent competition leads to firms' later signaling their private information to rivals. Due to signaling, equilibrium prices are distorted, and so while firms benefit from obtaining more precise private information,...