Related papers: Ignorance Is Bliss: The Screening Effect of (Noisy…
This paper studies how noise in certification technology affects seller profits in a duopoly with unobservable product quality. We identify two opposing effects of noisy certification. First, it reduces the informativeness of certification…
In many settings, multiple uninformed agents bargain simultaneously with a single informed agent in each of multiple periods. For example, workers and firms negotiate each year over salaries, and the firm has private information about the…
It is commonly-accepted wisdom that more information is better, and that information should never be ignored. Here we argue, using both a Bayesian and a non-Bayesian analysis, that in some situations you are better off ignoring information…
It is commonly-accepted wisdom that more information is better, and that information should never be ignored. Here we argue, using both a Bayesian and a non-Bayesian analysis, that in some situations you are better off ignoring information…
We examine how uncertain veracity of external news influences investor beliefs, market prices and corporate disclosures. Despite assuming independence between the news' veracity and the firm's endowment with private information, we find…
Information is increasingly being viewed as a resource used by organisms to increase their fitness. Indeed, it has been formally shown that there is a sensible way to assign a reproductive value to information and it is non-negative.…
A principal decides whether to approve an agent based on a noisy signal (e.g., test scores) generated by the agent. High-quality agents can produce high signals on average at lower cost, but the realizations are subject to noise that…
We show that while anonymization effectively obscures firm identity, it significantly reduces the power of textual understanding, thereby diminishing models' ability to extract meaningful economic signals from financial texts. This…
Information value, a measure for decision sensitivity, can provide essential information in engineering and environmental assessments. It quantifies the potential for improved decision-making when reducing uncertainty in specific inputs. By…
Noise, traditionally considered a nuisance in computational systems, is reconsidered for its unexpected and counter-intuitive benefits across a wide spectrum of domains, including nonlinear information processing, signal processing, image…
Motivated by online platforms such as job markets, we study an agent choosing from a list of candidates, each with a hidden quality that determines match value. The agent observes only a noisy ranking of the candidates plus a binary signal…
Context: Logging tasks track the system's functioning by keeping records of evidence that have been analyzed by monitoring and observability activities. For these activities to be effective, it is necessary to consider the quality of the…
Informational parsimony provides a useful inductive bias for learning representations that achieve better generalization by being robust to noise and spurious correlations. We propose \textit{information gating} as a way to learn…
We consider a market of risky financial assets whose participants are an informed trader, a representative uninformed trader, and noisy liquidity providers. We prove the existence of a market-clearing equilibrium when the insider…
We study how partial information about scoring rules affects fairness in strategic learning settings. In strategic learning, a learner deploys a scoring rule, and agents respond strategically by modifying their features -- at some cost --…
Modern financial market dynamics warrant detailed analysis due to their significant impact on the world. This, however, often proves intractable; massive numbers of agents, strategies and their change over time in reaction to each other…
We study what changes to an agent's decision problem increase her value for information. We prove that information becomes more valuable if and only if the agent's reduced-form payoff in her belief becomes more convex. When the…
Consumers often resort to third-party information such as word of mouth, testimonials and reviews to learn more about the quality of a new product. However, it may be difficult for consumers to assess the precision of such information. We…
Although companies are exhorted to provide more information to the financial community, it is evident that they choose different paths based upon their strategic emphasis and competitive environments. Our investigation explores the…
In black-box optimization, noise in the objective function is inevitable. Noise disrupts the ranking of candidate solutions in comparison-based optimization, possibly deteriorating the search performance compared with a noiseless scenario.…