Game Theory & Math Economics: Ilan Kremer (HUJI) - "Voluntary Tests and Disclosure: Benefits of Minimum Standards"

Date: 
Sun, 03/01/201616:00-17:00
Location: 
Elath Hall, 2nd floor, Feldman Building, Edmond J. Safra Campus
We analyze a model of voluntary information disclosure and acquisition. An agent chooses among different certification options, may privately obtain verifiable results, and decides whether to disclose them before selling an asset. We show that equilibria are informationally inefficient and that agents choose certifications that are too easy to pass. Self-regulation or a monopolist certifier do not help resolve the inefficiency.