Adverse Selection with Heterogeneously Informed Agents

Abstract

This paper was previously circulated under the titles "Public Information Acquisition, Endogenous Quality Choice and Welfare," and "Directed Search toward Heterogeneously Informed Buyers." I wish to gratefully acknowledge the help of Neil Wallace and Kala Krishna for their guidance and support for an earlier version, and Russel Wong and Jonathan Chiu for their comments on the current version. I would also like to thank Kalyan Chaterjee,