The hazards of vague communication

Gaetano Gaballo

Research Bulletin, 2017, vol. 34

Abstract: When market participants are uncertain about the content of an announcement, they may interpret market movements as an indication of the interpretation of others. As a result, releasing news that is open to subjective interpretation may increase uncertainty rather than reducing it. JEL Classification: D83, E13, E52, E62, H63

Keywords: Bayesian learning; communication; financial volatility (search for similar items in EconPapers)
Date: 2017-05
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