Information flow and price discovery dynamics

Price Dynamics of Vertically Diierentiated Information Markets

We explore the price dynamics of a vertically diierentiated market in which two or more sellers compete to provide an information good or service to a population of buyers. Each seller ooers the good or service at a xed level of \quality", and attempts to set its price in such a way that it maximizes its own proot. Five diierent seller pricing strategies, ranging widely from ones that require p...

House price dynamics with dispersed information

We use a user-cost model to study how dispersed information among housing market participants a¤ects the equilibrium house price. In the model, agents consume housing services, speculate on price changes and are disparately informed about local economic conditions. Information dispersion leads agent to form heterogeneous expectations about housing demand and prices. Optimists, who expect high h...

Information perception and price dynamics in a continuous double auction

U . S . Wage and Price Dynamics : A Limited Information Approach

This paper analyzes the dynamics of prices and wages using a limited information approach to estimation. I estimate a two-equation model for the determination of prices and wages derived from an optimization-based dynamic model in which both goods and labor markets are monopolistically competitive; prices and wages can be reoptimized only at random intervals; and, when prices and wages are not ...

Isolation and Information Flow in Quantum Dynamics

From the structure of quantum dynamics for closed and open systems, we describe several general results about information flow between interacting systems, which can be expressed in diagrammatic form. Conditions on information flow (e.g., that no information is transferred from system A to system B) imply that the overall dynamical evolution has a particular structure. We also remark that one s...