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This paper studies the incentives of short-lived agents to acquire costly private information in the presence of public … signals arising from market interaction. It characterizes the social learning process, that is the revelation of information … by public signals, and the information externalities involved. The analysis provides insights on the scope for government …
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The model we discuss in this note is a re-examination of the classical Bertrand model of imperfect competition. the main difference is that consumers are allowed to have some strategic behavior when deciding from which one of the two sellers to buy. We will approach the resolution of the...
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This paper proposes an argument that explains incumbency advantage with- out recurring to the collective irresponsibility of legislatures. For that purpose, we exploit the informational value of incumbency: incumbency confers voters informa- ion about governing politicians not available from...
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