E3S Web Conf.
Volume 164, 2020Topical Problems of Green Architecture, Civil and Environmental Engineering 2019 (TPACEE 2019)
|Number of page(s)||8|
|Section||Environmental and Resource Economics|
|Published online||05 May 2020|
Information disclosure in a local socio-economic system with tacit knowledge and information asymmetry
Kabardino-Balkarian Scientific Center of the Russian Academy of Sciences, Institute for Computer Science and Problems of Regional Management, I.Armand st., 37a, 360004, Nalchik, Russia
* Corresponding author: firstname.lastname@example.org
We study the effects of institutional information disclosure on the market equilibrium in a local market with knowledge asymmetry and scarce information. The purpose of our work is the analysis of long-term efficiency of a dedicated institutional mechanism of information disclosure for such a market. The paper presents the game-theoretic model of a local property rights market with an infrastructural institution disclosing non-personalized information in a system with a combination of market elements, administrative and shadow economy. For each object, there is some hidden non-transferrable information essential for assessment. Under such conditions, the influence of subjective biases on the market equilibrium can be described as a Bayesian probability model of adverse selection. In the elaborated model, the equilibrium parameters are theoretically analyzed. It is shown that information asymmetry in the modeled systems leads to an irrational allocation of investment resources. It is shown that the infrastructural institutions disclosing non-personalized information are not only unable to efficiently counteract adverse selection, but facilitate it.
© The Authors, published by EDP Sciences 2020
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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