What are the implications of rational inattention for the effects of public information on individual behavior and in turn welfare? I examine the impact of rational inattention to public information in the "beauty contest" model of Morris and Shin (2002). I show that with information processing...

In models with heterogeneous beliefs, we cannot analyze policy interventions using standard methods of welfare economics. We develop a novel way of assessing welfare in such models, building on risk sharing rather than the Pareto property as the concept of efficiency. Differences of opinion...

We exploit heterogeneity in decreasing returns to scale parameters across funds to analyze their effects on capital allocation decisions in the mutual fund market. We find strong evidence that steeper decreasing returns to scale attenuate flow sensitivity to performance, which has a large effect...

Belief disagreement generates a fundamental tension between two desirable features of a resource allocation: Pareto optimality and risk sharing. While Pareto optimality generally opposes restrictions to trade, a growing literature rejects it in the presence of heterogeneous beliefs and proposes...

We study the consequences of reported social misconduct for YouTube streamers. Using a staggered difference-in-differences approach, we find that YouTube channels of streamers who are found to have misconducted themselves experience significant drops in both subscription and viewership. Such...

We estimate a model in which Bayesian investors learn about parameters governing mutual fund performance in real time and competitively allocate capital to funds, conditional on their current beliefs. The model-implied aggregate allocation of capital in response to the history of observed...

Purpose: This paper aims to explore trade policy measures taken in response to COVID-19 and analyses in detail their extent and nature. It assesses their compatibility with World Trade Organisation (WTO) agreements: specifically, whether they were necessary and justifiable efforts to protect...

To predict consumers attached to the brand, research needs to be done to derive direct product-related behaviors that are relatively easy to observe and measure, in addition to conventional relation-oriented variables. In the end, if a consumer shows a particular behavior and can identify that...