Selling less information for more: garbling with benefits

The expected value of information in a standard portfolio investment problem with ex-post payment can increase when the information is garbled prior to its sale. Distorting the information helps to resolve the incentive problem decreasing the buyer’s default risk and thereby increasing the seller’s expected revenues.


Published in:
Economics Letters, 83, 2, 165-171
Year:
2004
Publisher:
Elsevier
ISSN:
0165-1765
Keywords:
Laboratories:




 Record created 2013-07-16, last modified 2018-03-17

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