Project Details
Projekt
Dynamic Information Revelation
Applicant
Professor Dr. Francesc Dilme
Subject Area
Economic Theory
Term
from 2016 to 2017
Project identifier
Deutsche Forschungsgemeinschaft (DFG) - Project number 321214819
The goal of this project is to investigate the role of prices in transmitting private information possessed by sellers. I will analyze markets where sellers possess private information about their goods such as, for example, the housing market or markets for some financial assets. In such markets, sellers set the price of their goods over time until the price is accepted by some buyer. The sellers may use their price choice to transmit information about their private information, and therefore the buyers may condition their decisions on the observed prices. My investigation will focus on developing a theoretical model to investigate how sellers choose the price to transmit or hide information about their products, and how such information transmission is shaped by the characteristics of the market. As a result, I expect to gain economic insights into how to optimally regulate markets to minimize the negative effects of the information asymmetries that, as some markets experienced in the recent financial crisis, may slow down or even freeze trade.
DFG Programme
Research Fellowships
International Connection
USA
