Alessandro Pavan

Alessandro Pavan

Institution

Northwestern University

PhD Year

2001

Email

alepavan@northwestern.edu

FTG Membership

Fellow

Website

https://faculty.wcas.northwestern.edu/apa522/

Featured Work

Mar 6, 2026

Alessandro Pavan, Savitar Sundaresan, Xavier Vives | Working Paper No. 00204-00

(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...