I consider a class of strategic interactions under incomplete information in which, prior to
finalizing their actions (consumption, production, or investment decisions), agents choose …

Using a simple microfounded macroeconomic model with price making firms and a central
bank maximizing the welfare of a representative household, we show that the presence of …

In “cognitive games,” players can influence their understanding of the game (self-directed
cognition) and/or their opponents' understanding (manipulative cognition). The concept of …

The psychology literature documents that individuals derive current utility from their beliefs
about future events. We show that, as a result, investors in financial markets choose to …

Theories of motivated beliefs suggest that individuals derive current utility from anticipating
better personal outcomes. We provide evidence that individuals tie macroeconomic …

Revisions of consensus macroeconomic and earnings forecasts positively predict
announcement-day forecast errors, whereas stock market returns during forecast revision …

We study a persuasion problem in which a sender designs an information structure to
induce a non-Bayesian receiver to take a particular action. The receiver, who is privately …

In “cognitive games,” players can influence their understanding of the game (self-directed
cognition) and/or their opponents' understanding (manipulative cognition). The concept of …

We study the investment efficiency of the historical cost and fair value measurement rules
when a reporting firm and its investors confront higher-order uncertainty inferring the …

This paper studies whether suspensions intended to provide a time-out for agents to digest
incoming information attenuate runs, under the assumption that agents overreact to news …