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Gary Biglaiser, Emilio Calvano, and Jacques Crémer

vol. 28, n. 1, April 2019, pp. 41–48

Markets with network effects are typically concentrated. The aim of this paper is to discuss some recent work on “incumbency advantage.” That is, the fact that firms already installed generate higher profits than entrants even if the latter offer identical or even better terms (in terms of price...

Milo Bianchi, and Jean-Marc Tallon

vol. 65, n. 4, April 2019, pp. 1486–1501

We match administrative panel data on portfolio choices with survey data on preferences over ambiguity. We show that ambiguity averse investors bear more risk, due to a lack of diversification. In particular, they exhibit a form of home bias that leads to higher exposure to the domestic relative to...

Patrick Fève, Alban Moura, and Olivier Pierrard

vol. 101, April 2019, pp. 130–144

This paper estimates a small-scale DSGE model of the US economy with interacting traditional and shadow banks. We find that shadow banks amplify the transmission of structural shocks by helping escape constraints from traditional intermediaries. We show how this leakage toward shadow entities...

Carlos Heitor Campania, and René Garcia

April 2019

We study the asset allocation and consumption decisions of an investor with recursive utility and a finite investment horizon. We provide an approximate analytical solution under a stochastic investment opportunity set. The solution becomes exact when the elasticity of intertemporal substitution is...

Astrid Hopfensitz, Cesar Mantilla, and Josepa Miquel-Florensa

vol. 72, n. 4, April 2019, pp. 1121–1153, 33 pages

We design and conduct a laboratory experiment with students and a field experiment with fishermen to test how catch uncertainty and reward schemes affect extraction in an open access fishery. We find that uncertainty in the relationship between effort and catch increases extraction effort and...

Philippe Bontems

vol. 19, n. 2, April 2019

This paper examines theoretically whether by combining both output based refunding and abatement expenditures based refunding it is possible to limit the negative consequences that a pollution tax imply for a polluting industry. We show that this is indeed the case by using a three-part policy...

Marie Juanchich, Miroslav Sirota, and Jean-François Bonnefon

vol. 32, n. 2, April 2019, pp. 179–193

We extend research on charity donations by exploring an everyday tactic for increasing compliance: asking politely. We consider three possible effects of politeness on charity donations: a positive effect, a negative effect, and a wiggle‐room effect where the perception of the request is adjusted...

Machiel Mulder, and Bert Willems

vol. 127, April 2019, pp. 228–239

This paper examines market structure, regulation, and market performance of the Dutch electricity retail market for households since its opening in 2004. Using data containing monthly prices for all products offered in the Dutch retail electricity markets over the period 2008–2014, we provide...

James K. Hammitt, B.R Murray, A. Kratka, K.A. Scherr, N. Eyal, J. Blumenthal-Barby, K. Freedberg, D.R. Kuritzkes, R. Edifor, M.N. Katz, K. Pollak, B.J. Zikmund-Fisher, S.D Halpern, M.C. Barks, and P.A. Ubel

n. 5, April 2019, pp. 109–115

People living with HIV (PLWHIV) can reasonably expect near-normal longevity, yet many express a willingness to assume significant risks to be cured. We surveyed 200 PLWHIV who were stable on antiretroviral therapy (ART) to quantify associations between the benefits they anticipate from a cure and...

Martin Boyer, Philippe De Donder, Claude Fluet, Marie-Louise Leroux, and Pierre-Carl Michaud

vol. 44, n. 2, April 2019, pp. 183–215

This paper reports survey evidence on long-term care (LTC) risk misperceptions and demand for long-term care insurance (LTCI) in Canada. We study three LTC risks: needing help with at least one activity of daily living, needing access to a nursing home, and living to the age of 85. We contrast...