This dissertation consists of three essays that empirically test economic theories on the causal effect of information on individuals and firms. The first chapter studies the consequences of lower consumer search costs on restaurants’ incentives to upgrade quality. It shows that cheaper access to online information from Tripadvisor reallocates demand to higher-rating establishments. In turn, lower-rating restaurants are more likely to exit, while the surviving ones hire workers with higher wages and better curricula, eventually improving their Tripadvisor ratings. The second chapter provides evidence on the political effects of mobile internet arrival in South Africa. Using granular spatial data on 3G coverage combined with municipa...