This paper examines the role of transparency in a benevolent monetary authority's policies. Each firm's payoff depends on unobservable macroeconomic conditions and firms may incur a cost to acquire private information about macroeconomic conditions. The policy authority attempts to infer the...

A general equilibrium model is presented in which individuals can learn about the realization of a payoff relevant latent random variable at a cost or extract information embedded in prices. While only partially revealing the realization of the latent random variable, equilibrium prices fully...

There exists a large literature on the optimal deterrence of crime. Within the literature, however, there exists a controversy over what the appropriate criterion is to determine optimality. The most popular method is that of maximization of a utilitarian welfare function. The controversy stems...