Transparency, asymmetric information and cooperation

Abstract

We inquire experimentally whether asymmetric information in competitive settings and competition per se influence individual social behaviour. Participants perform a task and are remunerated according to two schemes, a non-competitive and a competitive one, then they play a standard public goods game. In the first scheme participants earn a flat remuneration, in the other they are ranked according to their performance and remunerated accordingly. Information about ranking and income before the game is played varies across three different treatments. We find that competition per se does not affect the amount of contribution. The time spent to choose how much to contribute is negatively correlated with the decision of cooperating fully. The main result is that full information about the relative performance in the competitive environment enhances the cooperation, while partial information reduces it.

The Influence of Financial Indicators and Underwriter Reputation on Depreciated Stock Prices

“…This information may include financial reports, business strategies, revenue projections, and other factors that affect the company's value. On the other hand, individual investors or the general public may have limited access to such information (Tian et al, 2019;Zhu et al, 2019;Lotito et al, 2020;Momtaz, 2021;Pavlov et al, 2022). They have to rely on the information presented in the IPO prospectus, which is a document containing details about the company and the share offering.…”