Social and Behavioral Sciences Commons^™

Legal Risk And Insider Trading, Marcin Kacperczyk, Emiliano Sebastian Pagnotta

Research Collection Lee Kong Chian School Of Business

Do illegal insiders internalize legal risk? We address this question with hand-collected data from 530 SEC (the U.S. Securities and Exchange Commission) investigations. Using two plausibly exogenous shocks to expected penalties, we show that insiders trade less aggressively and earlier and concentrate on tips of greater value when facing a higher risk. The results match the predictions of a model where an insider internalizes the impact of trades on prices and the likelihood of prosecution and anticipates penalties in proportion to trade profits. Our findings lend support to the effectiveness of U.S. regulations' deterrence and the long-standing hypothesis that insider …

On The Alignment Of Consumer Surplus And Total Surplus Under Competitive Price Discrimination, Dirk Bergemann, Benjamin Brooks, Stephen Morris

Cowles Foundation Discussion Papers

A number of producers of heterogeneous goods with heterogeneous costs compete in prices. When producers know their own production costs and consumers know their values, consumer surplus and total surplus are aligned: the information structure and equilibrium that maximize consumer surplus also maximize total surplus. We report when alignment extends to the case where either consumers are uncertain about their own values or producers are uncertain about their own costs, and we also give examples showing when it does not. Less information for either producers or consumers may intensify competition in a way that benefits consumers but results in inefficient …

Tackling Misperceptions About Immigrants With Fact-Checking Interventions: A Randomized Survey Experiment, Syngjoo Choi, Chung-Yoon Choi, Kim

Research Collection School Of Economics

We conduct a randomized online survey experiment to study the impact of fact-checking offers and financial incentives on misperceptions about immigrants. We find that natives overestimate the number of immigrants and the social and economic costs of immigration. Offering a free check of the factual information about immigrants reduces these misperceptions; it becomes more effective when combined with financial incentives. However, more than half of the participants never took up offers to check factual information. Using a model of information search with limited attention, we identify the presence of non-negligible costs of information search and processing, which limits the effectiveness …

2023-4 Macro’S Missing Link: The Unbridged Gap Between Monetarism And The Wicksell Connection, David Laidler

Department of Economics Research Reports

Modern mainstream macroeconomics treats the economy “as if” always in equilibrium. Two older traditions, Monetarism and the Wicksell Connections have always dissented, arguing that how agents gather information and apply it to the coordination of their activities are prior problems requiring attention before equilibrium can, or cannot, be assumed. They have developed the implications of this claim along different lines, however, with the former dealing with questions raised by the existence of monetary exchange in general and the latter concentrating in particular on inter-temporal issues. This gap has persisted since Wicksell opened it up, and has never been satisfactorily bridged: …

Information, Intermediaries, And International Migration, Samuel Bazzi, Lisa Cameron, Simone Schaner, Firman Witoelar

Upjohn Institute Working Papers

Job seekers face substantial information frictions, especially in international labor markets where intermediaries match prospective migrants with overseas employers. We conducted a randomized trial in Indonesia to explore how information about intermediary quality shapes migration outcomes. Holding access to information about the return to choosing a high-quality intermediary constant, intermediary-specific quality disclosure reduces the migration rate, cutting use of low-quality providers. Workers who do migrate receive better pre-departure preparation and have improved experiences abroad, despite no change in occupation or destination. These results are not driven by changes in beliefs about average provider quality or the return to migration. Nor …

Too Much Of A Good Thing? A Governing Knowledge Commons Review Of Abundance In Context, Michael J. Madison, Brett M. Frischmann, Madelyn Sanfilippo, Katherine J. Strandburg

Articles

The economics of abundance, along with the sociology of abundance, the law of abundance, and so forth, should be re-framed, linked, and situated in a common context for empirical rather than conceptual research. Abundance may seem to be a new, big thing, between anxiety over information overload, Big Data, and related technological disruptions. But scholars know that abundance is an ancient phenomenon, which only seemed to disappear as twentieth century social science focused on scarcity instead. Restoring the study of abundance, and figuring out how to solve the problems that abundance might create, means shedding disciplinary blinders and going back …

Do You Know To Whom You Pay Your Taxes?: The Case Of Decentralized Spain, Julio López-Laborda, Fernando Rodrigo, Eduardo Sanz-Arcega

ICEPP Working Papers

A necessary condition for the efficiency gains that the theory of fiscal federalism attributes to decentralization to be effective is that citizens rightly assign the governmental responsibility for public action. However, surveys show that most Spaniards are unable to correctly identify the taxes received by the various levels of government. Exploiting the 2015 wave of the Spanish Institute for Fiscal Studies’ Fiscal Barometer, this paper empirically determines the profile of citizens who are best able to identify the allocation of taxes among levels of government in Spain. The estimates suggest that these citizens are those who are able to identify …

Experimental Persuasion, Ian Ball, José-Antonio Espín-Sánchez

Cowles Foundation Discussion Papers

We introduce experimental persuasion between Sender and Receiver. Sender chooses an experiment to perform from a feasible set of experiments. Receiver observes the realization of this experiment and chooses an action. We characterize optimal persuasion in this baseline regime and in an alternative regime in which Sender can commit to garble the outcome of the experiment. Our model includes Bayesian persuasion as the special case in which every experiment is feasible; however, our analysis does not require concavification. Since we focus on experiments rather than beliefs, we can accommodate general preferences including costly experiments and non-Bayesian inference.

Information Markets And Nonmarkets, Dirk Bergemann, Marco Ottaviani

Cowles Foundation Discussion Papers

As large amounts of data become available and can be communicated more easily and processed more e¤ectively, information has come to play a central role for economic activity and welfare in our age. This essay overviews contributions to the industrial organization of information markets and nonmarkets, while attempting to maintain a balance between foundational frameworks and more recent developments. We start by reviewing mechanism-design approaches to modeling the trade of information. We then cover ratings, predictions, and recommender systems. We turn to forecasting contests, prediction markets, and other institutions designed for collecting and aggregating information from decentralized participants. Finally, we …

Biased Beliefs And Entry Into Scientific Careers, Ina Ganguli, Patrick Gaulé, Danijela Vuletić Čugalj

Upjohn Institute Working Papers

We investigate whether excessively optimistic beliefs play a role in the persistent demand for doctoral and postdoctoral training in science. We elicit the beliefs and career preferences of doctoral students through a novel survey and randomize the provision of structured information on the true state of the academic market and information through role models on nonacademic careers. One year later, both treatments lead students to update their beliefs about the academic market and impact career preferences. However, we do not find an effect on actual career outcomes two years postintervention.

Information Search And Financial Markets Under Covid-19, Behzod B. Ahundjanov, Sherzod Akhundjanov, Botir B. Okhunjanov

Applied Economics Faculty Publications

The discovery and sudden spread of the novel coronavirus (COVID-19) exposed individuals to a great uncertainty about the potential health and economic ramifications of the virus, which triggered a surge in demand for information about COVID-19. To understand financial market implications of individuals’ behavior upon such uncertainty, we explore the relationship between Google search queries related to COVID-19—information search that reflects one’s level of concern or risk perception—and the performance of major financial indices. The empirical analysis based on the Bayesian inference of a structural vector autoregressive model shows that one unit increase in the popularity of COVID-19-related global search …

Higher Education Management Features Based On Innovation, Otabek Siddikovich Kahhorov

Scientific reports of Bukhara State University

The article lists the features of innovative management of higher education. The higher education system has the principles for the implementation of scientific and innovative activities, specific problems of the effective development of innovative activities and the problems that universities must solve. It is also noted that the university is designing the development of innovative higher education services in two areas (systematically important projects of the university; innovative projects in the priorities of the university).

Antitrust In Times Of Information Technology: An Analysis Of Big Tech Monopoly Cases, Shamayeta Rahman

Electronic Theses and Dissertations

The information technology industry is one of the most rapidly growing yet concentrated markets existing today. Big Tech monopolies and their increasingly anticompetitive behavior posits risks for competition, technological innovation and consumer welfare. This ranges from price discrimination, limiting consumer choices to the unethical use of data. The particular nature of information technology, with its network effects and negligible marginal costs, incentivizes and facilitates predatory market practices making antitrust analysis in this industry extremely complex. Certain schools of antitrust thought are more sensitive (namely the post-Chicago school) to these implications than others, though antitrust application is still lacking in both …

Historia De Las Ideas Económicas En Joseph Stiglitz Y Gregory Mankiw, Karla Margarita Medina Rangel, Jose Fernando Ortegón Acevedo

Economía

En este trabajo se analizan las ideas económicas de Joseph Stiglitz y Gregory Mankiw a través de un análisis de contenido hecho a una selección de sus obras, utilizando las categorías de análisis de precio, crecimiento e información. El análisis utiliza los aportes hechos al campo de la Historia de las Ideas por los historiadores Quentin Skinner y Reinhart Koselleck acerca del texto y el contexto, la intención al hacer una obra y el condicionamiento entre lenguaje e historia, que permiten construir una breve contextualización histórica del momento en que se dan los debates académicos en que se dan las …

Data Governance And The Emerging University, Michael J. Madison

Book Chapters

Knowledge and information governance questions are tractable primarily in institutional terms, rather than in terms of abstractions such as knowledge itself or individual or social interests. This chapter offers the modern research university as an example. Practices of data-intensive research by university-based researchers, sometimes reduced to the popular phrase “Big Data,” pose governance challenges for the university. The chapter situates those challenges in the traditional understanding of the university as an institution for understanding forms and flows of knowledge. At a broad level, the chapter argues that the new salience of data exposes emerging shifts in the social, cultural, and …

Signals In The Black Stack / Geometyr Design Manual, Jason T. Scaglione

Dissertations, Theses, and Capstone Projects

The following white paper provides a critical accompaniment to my capstone project: the GEOMEtyr Design Manual. GEOMEtyr is a virtual reality to be made accessible as a mobile and web platform for the visualization of certain systemic elements of a utopic world that parallels our own planet’s geographies, polities, and climates. As such, the GEOMEtyr virtualization is designed to derive utopian space from the informational structures of our own world. The operations by which this may be accomplished are broadly described within the accompanying GEOMEtyr manual. The white paper, Signals in the Black Stack, elaborates vital world-building characteristics of informational …

The Transparency And Disclosure Of Corporate Governance System In The Regard Of Investors, O. K. Iminov, A. B. Gafurov

Central Asian Problems of Modern Science and Education

The corporate is a form of business that attracts capital and expands it. The shareholders of corporations as investors fund their money in order to get profit from their ownerships. However, there is a relationship that lies on between shareholders and managers. As we know, the shareholders receive income in the form of dividends from the managers can gain profit over the shareholders‘ ownership. As we know, shareholders receive income in the form of dividends from the profits of companies, while managers receive income from the invested works in the company. It turns out a disagreement between them and the …

Testing The Boundaries Of The Double Auction: The Effects Of Complete Information And Market Power, Erik O. Kimbrough, Andrew Smyth

Economics Faculty Research and Publications

We report boundary experiments testing the robustness of price convergence in double auction markets for non-durable goods in which there is extreme earnings inequality at the competitive equilibrium (CE). Following up on a conjecture by Smith (1976a), we test whether the well-known equilibrating power of the double auction institution is robust to the presence of complete information about traders’ values and costs and the presence of symmetric market power. We find that complete information is insufficient to impede convergence to CE prices; however, introducing market power consistently causes prices to deviate from the CE, whether or not subjects possess complete …

Testing The Boundaries Of The Double Auction: The Effects Of Complete Information And Market Power, Erik O. Kimbrough

Economics Faculty Articles and Research

We report boundary experiments testing the robustness of price convergence in double auction markets for non-durable goods in which there is extreme earnings inequality at the competitive equilibrium (CE). Following up on a conjecture by Smith (1976a), we test whether the well-known equilibrating power of the double auction institution is robust to the presence of complete information about traders’ values and costs and the presence of symmetric market power. We find that complete information is insufficient to impede convergence to CE prices; however, introducing market power consistently causes prices to deviate from the CE, whether or not subjects possess complete …

Economic Model Of Information, Information Society, And Information Literacy: A View From Russia, Dmitry M. Kochetkov

Library Philosophy and Practice (e-journal)

The article reveals the theoretical model of information as an economic resource. The emphasis is put on the role of information in social and economic evolution, development of information society in Russia in the context of global trends. Further, the author proceeds to the concept of 'information literacy' and a new educational role of university libraries. The service model itself is changing: from satisfying information needs to an advanced model of want formation. Besides, in the 21st century, research libraries find new users: in addition to students and faculty, their services increasingly attract the attention of business. The article is …

Default, Efficiency And Uniqueness, Cheng-Zhong Qin, Thomas Quint, Martin Shubik

Cowles Foundation Discussion Papers

An adequate description of economic dynamics requires the introduction of a monetary system including default penalties and expectations in a society whose economy utilizes money and credit. This essay notes and discusses several of the factors involved in the use of money and credit in a process oriented economy. It links these observations with the general equilibrium treatment of the same underlying economy and formulates a government guidance game where the government sets several key parameters in a monetary economy sufficient to select a unique equilibrium. Low information and error correction are noted. The links to the first and second …

Single Bidders And Tacit Collusion In Highway Procurement Auctions, David R. Barrus, Frank A. Scott Jr.

Institute for the Study of Free Enterprise Working Papers

Collusion in auctions can take different forms, one of which is refraining from bidding. Such behavior may be overt or tacit.Certain aspects of highway procurement auctions facilitate collusive outcomes. We collect data on asphalt paving auctions conducted by the Kentucky Transportation Cabinet from 2005 to 2007. We analyze both the bid participation decision and the pricing decision. We include variables that affect firm’s’ costs as well as variables that capture competitive and strategic effects. Most importantly, we determine the potential service area of each asphalt plant and use that information to determine the potential bidders for each paving project. We …

Monitoring Institutions In Indefinitely Repeated Games, Gabriele Camera, Marco Casari

ESI Working Papers

Does monitoring past conduct facilitate intertemporal cooperation? We designed an experiment characterized by strategic uncertainty and multiple equilibria where coordinating on the efficient outcome is a challenge. Participants, interacting anonymously in a group, could pay a cost either to obtain information about their counterparts, or to create a freely available public record of individual conduct. Both monitoring institutions were actively employed. However, groups were unable to attain higher levels of cooperation compared to a treatment without monitoring. Information about past conduct alone thus appears to be ineffective in overcoming coordination challenges.

Three Essays On The Theory Of Money And Financial Institutions Essay 3: The Economy With Innovation, Externalities And Context, Martin Shubik

Cowles Foundation Discussion Papers

This essay is the third of three. The first is nontechnical and in part autobiograhpical describing the evolution of my approach to developing a microeconomic theory of money and.financial institutions. The second essay was devoted to a more formal sketch of a closed economic exchange system with no other externalities beyond money and markets. This essay builds on the existence of monetary exchange but also context, and active government with nonsymmetric information and many externaties indicate that the views of Keynes, Hayek and Schumpeter are all consistent with the next stages of complexity as the logic requires many different arrays …

Governing Medical Knowledge Commons - Introduction And Chapter 1, Katherine J. Strandburg, Brett M. Frischmann, Michael J. Madison

Book Chapters

Governing Medical Knowledge Commons makes three claims: first, evidence matters to innovation policymaking; second, evidence shows that self-governing knowledge commons support effective innovation without prioritizing traditional intellectual property rights; and third, knowledge commons can succeed in the critical fields of medicine and health. The editors' knowledge commons framework adapts Elinor Ostrom's groundbreaking research on natural resource commons to the distinctive attributes of knowledge and information, providing a systematic means for accumulating evidence about how knowledge commons succeed. The editors' previous volume, Governing Knowledge Commons, demonstrated the framework's power through case studies in a diverse range of areas. Governing Medical Knowledge …

Law And Economics Of Information, Tim Wu

Faculty Scholarship

Information is of enormous importance to contemporary economics, science, and technology. Since the 1970s, economists and legal scholars, relying on a simplified “public good” model of information, have constructed an impressively extensive body of scholarship devoted to the relationship between law and information. The public good model tends to justify law, such as the intellectual property laws or various forms of securities regulation that seek to incentivize the production of information or its broader dissemination. This chapter reviews the public choice model and identifies two recent trends. First, scholars have extended the public good model of information to an ever-increasing …

Textual Analysis And Machine Leaning: Crack Unstructured Data In Finance And Accounting, Li Guo, Feng Shi, Jun Tu

Research Collection Lee Kong Chian School Of Business

In finance and accounting, relative to quantitative methods traditionally used, textual analysis becomes popular recently despite of its substantially less precise manner. In an overview of the literature, we describe various methods used in textual analysis, especially machine learning. By comparing their classification performance, we find that neural network outperforms many other machine learning techniques in classifying news category. Moreover, we highlight that there are many challenges left for future development of textual analysis, such as identifying multiple objects within one single document.

Post-Conflict News And Information Needs Of West African Farmers: Voices From Côte D’Ivoire And Mali, Assoumane A. Maiga, M. Craig Edwards, Marshall A. Baker, D. Dwayne Cartmell Ii, Joel M. Jenswold

Journal of International Agricultural and Extension Education

During the decades following the independence of Sub-Saharan African countries, many. Farmers were severely affected by armed conflicts. News and information providers could provide important support toward the economic recovery of these farmers and the rebuilding of their communities. This qualitative study sought to explore farmers’ perceptions on the role of media and other sources in disseminating news and information after armed conflicts ceased in Côte d’Ivoire and in Mali. The study involved10 key informants, five from each country. Rigorous qualitative research procedures were used to collect and analyze the study’s data. Six themes emerged from the interviews. Farmers perceived …

Behavioral Determinants Of Biofortified Food Acceptance: The Case Of Orange-Fleshed Sweet Potato In Ghana, Chinonso E. Etumnu

Master's Theses

Biofortified foods are being introduced in sub-Saharan Africa as an important strategy to help address micronutrient malnutrition. However, there has been little research on factors that could play decisive roles in their successful introduction. This paper investigates the determinants of consumer acceptance of biofortified orange-fleshed sweet potato (OFSP) using data from a choice experiment conducted in Ghana. I find that OFSP is preferred to traditional white-fleshed and yellow-fleshed sweet potatoes as indicated by consumers' marginal willingness to pay for the three varieties. I also find that respondents' socio-economic characteristics do not have a significant effect on consumer acceptance of OFSP. …

Does Price Affect The Demand For Information About New Health Technologies? Evidence From A Field Experiment In Nigeria, Edward Okeke, A. V. Chari, Akinfolarin Adepiti

Edward Okeke