Screening Dominance: A Comparison of Noisy Signals†

• 成果类型: Article
• 署名作者: Lagziel, David; Lehrer, Euud
• 署名单位: Ben-Gurion University of the Negev; Tel Aviv University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20200284
• 发表日期: 2022
• 页码: 1-24
• 关键词: increasing risk; hierarchies; INFORMATION; MARKETS

摘要

This paper studies the impact of noisy signals on screening pro-cesses. It deals with a decision problem in which a decision-maker screens a set of elements based on noisy unbiased evaluations. Given that the decision-maker uses threshold strategies, we show that addi-tional binary noise can potentially improve a screening, an effect that resembles a lucky coin toss. We compare different noisy sig-nals under threshold strategies and optimal ones, and we provide several characterizations of cases in which one noise is preferable over another. Accordingly so, we establish a novel method to com-pare noise variables using a contraction mapping between percen-tiles. (JEL D82)