based on grades received at school. It is examined how this matching is affected if good grades are granted to some low …

based on grades received at school. It is examined how this matching is affected if good grades are granted to some low …

This paper analyzes the problem of matching heterogeneous agents in a Bayesian learning model. One agent gives a noisy … cross-matching occurs, so that agents of low knowledge catch up with those of higher one. It is shown that: (i) a greater … informational component in production makes cross-matching more likely; (ii) as the new technology is mastered, production becomes …

' later signaling their private information to rivals. Due to signaling, equilibrium prices are distorted, and so while firms …, compared with firms that do not attempt to manipulate rivals' beliefs, signaling firms acquire less precise information. An …We study firms' incentives to acquire private information in a setting where subsequent competition leads to firms …