Year: 2000
Type: other
Abstract: We formulate a simple model of advice which can be useful to guide the regulation of the financial retail industry. An informed agent (financial adviser) transmits information to an otherwise uninformed principal (investor) with uncertain degree of strategic sophistication. Incentives for truthful information disclosure and information acquisition are studied. The role of explicit monetary transfers is analyzed.
Author: Marco Ottaviani
Institution: University College London
Language: English
Topic: Game Theory and Applications
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W61765971