Browsing by Author "Troncoso-Valverde, Cristián"
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Item Information Release in Second–Price Auctions(School of Business and Economics, Universidad del Desarrollo, 2015-04) Troncoso-Valverde, CristiánThis paper studies the incentives faced by competing auctioneers who can release information to prospective bidders before bidders choose trading partners. I provide sufficient conditions that ensure the existence of a unique equilibrium in which both sellers release all available information. Contrary to previous findings in the literature, the existence of this equilibrium holds true even if there are only two bidders in the market. Thus, the findings of this paper provides support to the idea that competition among sellers improves informational efficiency relatively to monopolyItem Voluntary disclosure of product quality in competitive markets(School of Business and Economics, Universidad del Desarrollo, 2016-06) Troncoso-Valverde, CristiánThis note examines the incentives to communicate private information about product quality in markets in which sellers can voluntarily disclose this information before competing on prices. We provide sufficient conditions for the existence of two types of symmetric equilibria, one in which every type of seller fully discloses the quality of its product and one in which no such disclosures are made. We then show that if the disclosure cost is not too high the full disclosure equilibrium Pareto-dominates the full non-disclosure one, suggesting that competition may increase rather than reduce incentives to reveal information through disclosure