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Communication, Home Bias And Social Capital, Sharon Raszap Skorbiansky

Open Access Dissertations

This dissertation consists of three essays on the effects of communication, home bias and social capital. The first study analyzes three different laboratory treatments that determine if policies that introduce and improve communication are beneficial to a market. The control treatment has no communication. Then, two different types of communication mechanisms are introduced: cheap communication, where subjects are able to lie, and truthful communication, where only honest messages may be sent. The results demonstrate that truthful communication dramatically improves subjects' ability to trade efficiently, ultimately leading to higher social surplus and lower income inequalities. Cheap communication does not produce the …