We develop a theory of stock-market crashes based on differences of opinion among investors. Because of short-sales constraints, bearish investors do not initially participate in the market and their information is not revealed in prices. However, if other, previously-bullish investors have a...

Incomplete information issues pervade health care markets, with market participants often having relatively little information, and their behavior exhibiting corresponding aberrations from classic market behavior. Consumers often have relatively little information about prices and quality...

This paper investigates robust information transmission between a sender and a receiver in the Crawford and Sobel (1982) model. We characterize behavior that remains equilibrium behavior independently of the form of a small communication cost. Under standard conditions, we find that an...

I explore consequences of publishing inconvenient information about the performance of public institutions. To understand how citizens would respond to such information, I conducted a survey experiment in which respondents were informed about sentencing disparity in the Czech Republic caused by...

This study investigates how region-specific shocks affect international behavior of individuals when information is partially or scarcely spread across the border. We use both local and international tourist data pertaining to Hakone in Japan, to focus on two exogeneous region-specific shocks of...

Several Phillips curves based on sticky information and sticky prices are estimated and compared using Bayesian VAR-GMM. This method derives expectations in each Phillips curve from a VAR and estimates the Phillips curve parameters and the VAR coefficients simultaneously. Quasi-marginal...