BCM seminar: Bad News Turned Good: Reversal Under Censorship
MOVED to meeting room T. Westermann, Rolighedsvej 25, Building C, 2nd floor.
Open seminar with Egor Starkov, Department of Economics, University of Copenhagen
Starkov joined the Department of Economics at KU a few months ago after completing his PhD at Northwestern University. The paper is available online.
Authors: Aleksei Smirnov and Egor Starkov (KU)
Title: Bad News Turned Good: Reversal Under Censorship
Sellers often have the power to censor the reviews of their products. We explore the effect of these censorship policies in markets where some consumers are unaware of possible censorship. We find that if the share of such ”naive” consumers is not too large, then rational consumers treat any bad review that is revealed in equilibrium as good news about product quality. This makes bad reviews worth revealing and allows the seller to use them as a costly signal of his product’s quality to rational consumers.
Access the BCM website here
The seminar is open to all. You are welcome to bring your lunch.
There is limited seating.
There is a lift from ground floor to 1st floor but there are stairs by the entrance which limits access for wheel chair users.
Please contact us if you have any questions regarding access.