Download or read book The role of information in markets with quality uncertainty written by Christopher Gertz and published by . This book was released on 2014 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economie de L incertain Et de L information written by Jean-Jacques Laffont and published by MIT Press. This book was released on 1989 with total page 312 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Economics of Uncertainty and Information may be used in conjunction with Loffont's Fundamentals of Economics in an advanced course in microeconomics.
Download or read book Quality Uncertainty and Perception written by Lalit Wankhade and published by Springer Science & Business Media. This book was released on 2010-06-16 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: It has been observed that the studies of quality are pursued in various disciplines like economics, quality management, and marketing science, and are seen isolated. The treatments imparted to these studies are also different and has the backdrop of discipline in which the work has been pursued. The nature of isolation is equally seen when quality uncertainty and perceived quality were pursued separately without showing any inkling that these can be complimentary. Economist and Nobel Laureate, Akerlof (1970), wrote a seminal piece “The market for lemons: quality uncertainty and market mechanism”, where he described quality uncertainty due to information asymmetry. It refers to the fact that a party in a transaction may have more information than the other. This is information asymmetry. If the seller has more information than the buyer about the product quality, he/she may sell it, as if it is a high-quality product. In reality, it could be a low-quality product. The buyer does not have the information regarding the quality of the offered product. The market condition that led to this transaction is quality uncertainty due to information asymmetry.
Download or read book Essential Readings in Economics written by Saul Estrin and published by Bloomsbury Publishing. This book was released on 1995-05-24 with total page 412 pages. Available in PDF, EPUB and Kindle. Book excerpt: Intellectual advances in economics often come from debates that have been long forgotten but which offer context, depth and clarity to contemporary study. Essential Readings in Economics makes available in a single volume some of the seminal papers in the areas of microeconomics and macroeconomics for intermediate courses in economic principles. The readings are organised in two groups: Microeconomics and Macroeconomics. Part 1 looks at topics ranging from 'The Theory of Demand' and 'The Firm and Supply' to 'The Economics of Uncertainty and Information'. In Part 2 the wide ranging debates over the last 55 years are illustrated with contributions from Keynes, Friedman, Phillips and other leading Economists. This vigorous and accessible collection of readings is intended to supplement and extend the understanding students could obtain from conventional introductory textbooks.
Download or read book Information Structures in Economics written by M. Nermuth and published by Springer Science & Business Media. This book was released on 2013-03-13 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is intended as a contribution to the theory of markets with imperfect information. The subject being nearly limitless, only certain selected topics are discussed. These are outlined in the Introduction (Ch. 0). The remainder of the book is divided into three parts. All results of economic significance are contained in Parts II & III. Part I introduces the main tools for the analysis, in particular the concept of an information structure. Although most of the material presented in Part I is not original, it is hoped that the detailed and self-contained exposition will help the reader to understand not only the following pages, but also the existing technical and variegated literature on markets with imperfect information. The mathematical prerequisites needed, but not explained in the text rarely go beyond elementary calculus and probability theory. Whenever more advanced concepts are used, I have made an effort to give an intuitive explanation as well, so that the argument can also be followed on a non-technical level (cf. e.g. the treatment of the "generic" viewpoint in Ch. 9). In the same spirit, discussion of mathematical assumptions is limited to those which have economic sig- ficance, whereas purely "technical" assumptions (like differentiability or integrability of certain functions) are usually made without comment whenever convenient. The logical interdependence of chapters is as follows: Ch. 3 . Ch. 1 /~I--=---- Ch. 4 Ch. 2 Ch. 8 ~I -=--- /"'-.... Ch.
Download or read book The Analytics of Uncertainty and Information written by Sushil Bikhchandani and published by Cambridge University Press. This book was released on 2013-08-12 with total page 509 pages. Available in PDF, EPUB and Kindle. Book excerpt: There has been explosive progress in the economic theory of uncertainty and information in the past few decades. This subject is now taught not only in departments of economics but also in professional schools and programs oriented toward business, government and administration, and public policy. This book attempts to unify the subject matter in a simple, accessible manner. Part I of the book focuses on the economics of uncertainty; Part II examines the economics of information. This revised and updated second edition places a greater focus on game theory. New topics include posted-price markets, mechanism design, common-value auctions, and the one-shot deviation principle for repeated games.
Download or read book An Economic Theorist s Book of Tales written by George A. Akerlof and published by Cambridge University Press. This book was released on 1984-10-26 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: A collection of essays exploring the consequences of making non-standard economic assumptions. Breaking away from traditional economic theory, they cover a wide range of microeconomic and macroeconomic fields as well as anthropology, psychology and sociology.
Download or read book The Economics Concept and Design of Information Intermediaries written by Frank Rose and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Internet provides an infrastructure that makes the steadily increasing amount of information accessible efficiently, quickly, and inexpensively. Closely connec ted with this opportunity is the danger that the available information will over charge the individual information seeker's capability to process the information and to judge its quality. In this situation, information intermediaries can take upon the role of an expert and a guarantor of quality similar to intermediaries in markets for physical goods or finances. Thus, information intermediaries can be a trust worthy, information processing third party, mediating between information seekers and information sources. The current technological development has created information technologies that are capable to efficiently process large amounts of information. However, the pro vision of intermediation services necessitates a thorough examination of the basic principles underlying the economics of information intermediaries as well as a sound foundation on information technologies. The present work by Frank Rose addresses the fundamental question concerning the economics of information intermediaries by means of an abstract model. The model focuses on services that concentrate on the search and mediation of information, and identifies the essential influencing factors of the intermediary's environment. The model is then employed to investigate the impact of environmental conditions on the information intermediary on the one hand, and the optimal strategy of the information intermediary as a reaction to environmental conditions on the other hand.
Download or read book Risk Uncertainty and Profit written by Frank H. Knight and published by Cosimo, Inc.. This book was released on 2006-11-01 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: A timeless classic of economic theory that remains fascinating and pertinent today, this is Frank Knight's famous explanation of why perfect competition cannot eliminate profits, the important differences between "risk" and "uncertainty," and the vital role of the entrepreneur in profitmaking. Based on Knight's PhD dissertation, this 1921 work, balancing theory with fact to come to stunning insights, is a distinct pleasure to read. FRANK H. KNIGHT (1885-1972) is considered by some the greatest American scholar of economics of the 20th century. An economics professor at the University of Chicago from 1927 until 1955, he was one of the founders of the Chicago school of economics, which influenced Milton Friedman and George Stigler.
Download or read book Product Fit Uncertainty in Online Markets written by Yili Hong and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Product fit uncertainty (defined as the degree to which a consumer cannot assess whether a product's attributes match her preference) is proposed to be a major impediment to online markets with costly product returns and lack of consumer satisfaction. We conceptualize the nature of product fit uncertainty as an information problem and theorize its distinct effect on product returns and consumer satisfaction (versus product quality uncertainty), particularly for experience (versus search) goods without product familiarity. To reduce product fit uncertainty, we propose two Internet-enabled systems - website media (visualization systems) and online product forums (collaborative shopping systems) - that are hypothesized to attenuate the negative effect of product type (experience versus search goods) on product fit uncertainty. Hypotheses that link experience goods to product returns through the mediating role of product fit uncertainty are tested with analyses of a unique dataset composed of secondary data matched with primary direct data from numerous consumers who had recently participated in buy-it-now auctions. The results show the distinction between product fit uncertainty and quality uncertainty as two distinct dimensions of product uncertainty, and interestingly show that, relative to product quality uncertainty, product fit uncertainty has a significantly stronger effect on product returns. Notably, while product quality uncertainty is mainly driven by the experience attributes of a product, product fit uncertainty is mainly driven by both experience attributes and lack of product familiarity. The results also suggest that Internet-enabled systems are differentially used to reduce product (fit and quality) uncertainty. Notably, the use of online product forums is shown to moderate the effect of experience goods on product fit uncertainty, while website media are shown to attenuate the effect of experience goods on product quality uncertainty. The results are robust to econometric specifications and estimation methods. The paper concludes by stressing the importance of reducing the increasingly-prevalent information problem of product fit uncertainty in online markets with the aid of Internet-enabled systems.
Download or read book Advances in Digital Marketing and eCommerce written by Francisco J. Martínez-López and published by Springer Nature. This book was released on 2020-05-06 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book highlights the latest research presented at the first Digital Marketing & eCommerce Conference (Barcelona, Spain, June 2020). Papers include a diverse set of digital marketing and eCommerce-related topics such as user psychology and behavior in social commerce, influencer marketing in social commerce, social media monetization strategies, social commerce characteristics and their impact on user behavior, social branding, business model, user privacy, and more.
Download or read book Constructing Quality written by Jens Beckert and published by OUP Oxford. This book was released on 2013-06-13 with total page 355 pages. Available in PDF, EPUB and Kindle. Book excerpt: How can we engage in a market relationship when the quality of the goods we want to acquire is unknown, invisible, or uncertain? For market exchange to be possible, purchasers and suppliers of goods must be able to assess the quality of a product in relation to other products. Only by recognizing qualities and perceiving quality differences can purchasers make non-random choices, and price differences between goods be justified. "Quality" is not a natural given, but the outcome of a social process in which products become seen as possessing certain traits, and occupying a specific position in relation to other products in the product space. While we normally take the quality of goods for granted, quality at a closer look is the outcome of a highly complex process of construction involving producers, consumers, and market intermediaries engaged in judgment, evaluation, categorization, and measurement. The authors in this volume investigate the processes through which the quality of goods is established. They also investigate how product qualities are contested and how they change over time. The empirical cases discussed cover a broad range of markets in which quality is especially difficult to assess. The cases include: halal food, funeral markets, wine, labor, school choice, financial products, antiques, and counterfeit goods. The book contributes to the sociology of markets. At the same time it connects to the larger issue of the constitution of social order through cognitive processes of classification.
Download or read book On the Roles of Information in the Interaction of Agents in Markets written by Pedro Gardete and published by . This book was released on 2011 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: Markets are rich environments for study. Two features in particular make them attractive settings for the study of the roles of information. First, they are often characterized by a significant amount of uncertainty, an essential ingredient for information to be relevant. Second, strategic interactions abound. Each chapter of this dissertation uses a different `lens' so as to focus on particular roles of information in strategic market settings. First, information is considered in its pure `aid to decision-making' role, in which agents use it to improve their decisions, not only based on the expected future conditions but also on the expected actions of the other agents which in turn depend on the information they are likely to hold. Second, information is considered in its `influencer' and `coordinator' roles. It can be used to influence the decisions of agents which will in turn affect the welfare of the original transmitters, while increasing overall market coordination. Finally, information is considered in its `homogenizer' role, in the sense that actions and preferences may become more similar after its repeated use and subsequent transmission. The purpose of this study is to propose, document and estimate mechanisms by which information fulfills these specific roles in actual market settings. This dissertation is organized in the following way. Chapter 1 analyzes the use of information acquired by decision-makers in a strategic context. Chapter 2 introduces the layer of the information transmitter as a separate strategic entity, who may have different interests from those of the receivers. Finally, Chapter 3 considers the case where the same agents are simultaneously receivers, users and transmitters of information. These scenarios are analyzed in well-defined market contexts. Chapter 1 looks at the role of information in the production and capacity decisions of DRAM producers. I estimate the precision of market information used by firms in the DRAM industry, implicit in the patterns and accuracy of their actions. The value of information is estimated as well as its impact on the decisions of the firms. Chapter 2 investigates advertising between firms and consumers in a market for a search good. It is shown that even if firms have an interest in providing biased information through advertising, it is still possible for it to convey credible content that may be useful to consumers. In addition it is shown that the precision of information delivered is sparser as the quality of the product or service in question decreases. Finally, Chapter 3 analyzes the context of online movie ratings and estimates how the opinions of consumers shape the opinions of subsequent consumers, ad infinitum. It is estimated that roughly half of the consumers' valuations for movies is a function of the valuations of other consumers who have had a chance to rate the movie earlier. A sensitivity analysis of how some extreme initial ratings influence consumer valuations is performed, revealing considerable effects.
Download or read book Quality Uncertainty with Imperfect Information Acquisition written by Christopher Gertz and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: I analyze a monopolistic model of quality uncertainty but with the possibility of information acquisition on the consumer side. Information is costly and its amount is chosen by the consumer. The analysis of Bayesian equilibria shows the possibility of three equilibrium classes, only one of which leaves positive utility to the consumer. The classic adverse selection results of these markets are weakened in this situation. I show that cheaper information does not necessarily benefit the consumer but can instead rule out the buyer-friendly and welfare maximizing equilibria. Moreover, making quality search arbitrarily efficient does not lead to sure selling of the high quality product. A sustainable adverse selection effect, though weaker than in the classical model, remains even in the limit.
Download or read book Volatility written by Robert A. Schwartz and published by Springer. This book was released on 2012-12-28 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Volatility is very much with us in today's equity markets. Day-to-day price swings are often large and intra-day volatility elevated, especially at market openings and closings. What explains this? What does this say about the quality of our markets? Can short-period volatility be controlled by better market design and a more effective use of electronic technology? Featuring insights from an international array of prominent academics, financial markets experts, policymakers and journalists, the book addresses these and other questions concerning this timely topic. In so doing, we seek deeper knowledge of the dynamic process of price formation, and of the market structure and regulatory environment within which our markets function. The Zicklin School of Business Financial Markets Series presents the insights emerging from a sequence of conferences hosted by the Zicklin School at Baruch College for industry professionals, regulators, and scholars. Much more than historical documents, the transcripts from the conferences are edited for clarity, perspective and context; material and comments from subsequent interviews with the panelists and speakers are integrated for a complete thematic presentation. Each book is focused on a well delineated topic, but all deliver broader insights into the quality and efficiency of the U.S. equity markets and the dynamic forces changing them.
Download or read book Economics of Asymmetric Information written by Indian Economic Association. Annual Conference and published by Deep and Deep Publications. This book was released on 2006 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contributed papers presented at the one of the technical sessions of Indian Economic Association's 85th conference held at the Kerala University in 2002.
Download or read book The Competitive Firm Under Price Uncertainty written by Udo Broll and published by . This book was released on 2007 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt:
