Persuasion and Norm Persistence

Abstract

I study a dynamic information design problem à la Albano and Lizzeri (2001) in which a regulator can disclose unobserved quality information as the norms of a population evolve. Under moral hazard, the regulator sets a pass/fail standard ex-ante. A monopolist chooses a price to sell an asset to a population of consumers. Over time, consumers’ purchase decision depends on the signal, others’ buying behaviour, and norm evolution. In this paper, I use evolutionary game theory to describe the tension between quality certification and norm persistence.

Francesca Chiaradia
Francesca Chiaradia
PhD Student in Economics

My research interests include law and economics, economics of innovation, and information economics.