Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 20, 2016 erstellt
Description:
This paper considers a dynamic market with a strategic, price setting firm that knows the quality of the product it sells to an infinite set of rational consumers who enter the market sequentially and observe conditionally independent private signals about the quality. In equilibrium, the price converges to the realized quality almost surely if and only if the price is asymptotically informationally efficient, i.e., eventually represents all public information. The second result establishes that welfare and informational efficiency are inversely related. The higher the degree of informational efficiency of the price path, the lower is expected total welfare