Alessandro Pavan
Institution
Northwestern University
PhD Year
2001
alepavan@northwestern.edu
FTG Membership
Fellow
Website
https://faculty.wcas.northwestern.edu/apa522/
Featured Work
Mar 6, 2026
(In)efficiency in Information Acquisition and Aggregation through Prices
We study markets in which traders acquire private information before submitting their schedules. We characterize conditions under which traders over-invest (respectively, under-invest) in information and trade excessively (respectively, insufficiently) on their private signals. These inefficiencies arise from a novel interaction between learning and pecuniary externalities. We show that, generically, no policy based solely on equilibrium
prices and individual trade volumes can simultaneously implement efficiency in information...