Uncertainty and information accuracy in adverse selection

• Type: Article in International Scientific Journal
• Date: 2008

Authors

pereira, sca (Author) FEP; sousa, psa (Author) FEP

Journal

Title: Economics Letters

Vol. 100 No. 3

Pages: 321-325

ISSN: 0165-1765

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 0 Citations

ISI Web of Science

Scopus - 0 Citations

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

CORDIS: Social sciences > Economics > Microeconomics

Other information

Authenticus ID: P-003-WEY

DOI: 10.1016/j.econlet.2008.02.020

Abstract (EN): We extend Lewis and Sappington [Lewis, T., Sappington, D., 1991, All-or-nothing information control, Economics Letters 37, 111-113] analysis by exploring the effect of the uncertainty about the state of nature on the principal decision with respect to the signal, perfect or imperfect, the agent receives. We show that when the principal output elasticity of value is not too low, there is a level of uncertainty that separates the two cases.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 5