We examine how the adoption of information communication technology affects bilateral trade. The context is a public program in Norway that rolled out broadband access points leading to plausibly exogenous variation availability and by firms. find makes trade patterns more sensitive distance economic size. These results are consistent with model variable elasticity demand. predicts lowers frict...

We study a dynamic stopping game between principal and an agent. The gradually learns about the agent's private type from noisy performance measure that can be manipulated by agent via costly hidden action. fully characterize unique Markov equilibrium of this game. find terminations/market crashes are often preceded spike in manipulation intensity (expected) performance. Moreover, due to endoge...

We formalize the editorial role of news media in a multisector economy and show that can be an independent source business cycle fluctuations, even when they report accurate information. Public reporting about subset sectoral developments are newsworthy but unrepresentative causes firms across all sectors to hire too much or little labor. construct historical measures US coverage use them calib...

We introduce a set-valued solution concept, M equilibrium, to capture empirical regularities from over half century of game theory experiments. show equilibrium serves as meta for various models that hitherto were considered unrelated. is empirically robust and, despite being set-valued, falsifiable. Results series experiments compare leading behavioral demonstrate its virtues in predicting obs...

We provide predictions for DSGE models with incomplete information that are robust across structures. Our approach maps an incomplete-information model into a full-information economy time-varying expectation wedges and provides conditions ensure the rationalizable by some structure. Using our approach, we quantify potential importance of as source business cycle fluctuations in otherwise frict...

Nowadays, the world economies are rapidly moving towards being more Knowledge-based Economy (KBE) and supporting the force of knowledge as a vital component of economic growth. This recent acceleration in the transition to Knowledge-based Economy in the world, has affected regional economic performance. In this paper, we surveyed the regional convergence in Knowledge-based Economy for selected ...

by the advent and development of information and communication technology (ict), the micro and macro economic variables are changed. in other words, the exclusive characteristics of ict can alter the job framework in a society. this fact will be done in our country, too. because of the importance of the employment issue in iran, a research in about of effect of ict on this variable in iran is s...

We analyze the incentives for showing off, which we model as a costly signaling game, and study consequences of norms against such behavior. Prior to competing in contest, newcomer can signal his talent an incumbent. In equilibrium, ability occurs only when is exceptionally talented. situations benefits both contestants: obvious reasons; incumbent by economizing on wasted effort contest. Our re...

We derive a new cost of information in rational inattention problems, the neighborhood-based functions, starting from observation that many settings involve exogenous states with topological structure. These functions are uniformly posterior separable and capture notions perceptual distance. This second property ensures costs, unlike mutual information, make accurate predictions about behavior ...

We use administrative data from Sweden to study adherence 63 medication-related guidelines. compare the of patients without personal access medical expertise that with access, namely doctors and their close relatives. estimate observably similar have 3.8 percentage points lower adherence, relative a baseline rate 54.4 percent among those access. Our findings suggest an important role in nonadhe...