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Information disclosure and asymmetric speed of learning in booms and busts

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  • Palazzo, Francesco
  • Zhang, Min

Abstract

We consider a model in which agents gradually learn about the aggregate market conditions — ‘boom’ or ‘bust’ — from the information disclosed after a trading round. The disclosure rules can generate asymmetric learning and affect the degree of asymmetry. In particular, when only winning bids are publicly disclosed, learning is more rapid in a bust.

Suggested Citation

  • Palazzo, Francesco & Zhang, Min, 2017. "Information disclosure and asymmetric speed of learning in booms and busts," Economics Letters, Elsevier, vol. 158(C), pages 37-40.
    • Handle: RePEc:eee:ecolet:v:158:y:2017:i:c:p:37-40
    DOI: 10.1016/j.econlet.2017.06.027
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    References listed on IDEAS

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    More about this item

    Keywords

    Asymmetric learning; Information disclosure;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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