advanced search

Jieying Hong, and Sébastien Pouget

February 2021

This paper studies the role of preopening periods in liquidity formation and welfare in financial markets. Because no transaction occurs during these preopening periods, their economic significance could be questioned. We model a market where costly participation and asymmetric information prevent...

Mathias Reynaert, and James M. Sallee

vol. 13, n. 1, February 2021, pp. 372–412

Firms sometimes comply with externality-correcting policies by gaming the measure that determines policy. This harms buyers by eroding information, but it benefits them when cost savings are passed through into prices. We develop a model that highlights this tension and use it to analyze gaming of...

Doh-Shin Jeon, and Jay Pil Choi

vol. 13, n. 1, February 2021, pp. 283–337

Partly motivated by the recent antitrust investigations concerning Google, we develop a leverage theory of tying in two-sided markets. We analyze incentives for a monopolist to tie its monopolized product with another product in a two-sided market. Tying provides a mechanism to circumvent the non-...

Stefan Ambec, and Claude Crampes

vol. 94, n. 105074, February 2021

The presence of consumers able to respond to changes in wholesale electricity prices facilitates the penetration of renewable intermittent sources of energy such as wind or sun power. We investigate how adapting demand to intermittent electricity supply by making consumers price-responsive - thanks...

Gladys Barragan, Maxime Cauchoix, Anne Regnier, Marie Bourjade, Astrid Hopfensitz, and Alexis Chaine

vol. 288, n. 1944, February 2021

Cooperation plays a key role in the development of advanced societies and can be stabilized through shared genes (kinship) or reciprocation. In humans, cooperation among kin occurs more readily than cooperation among non-kin. In many organisms, cooperation can shift with age (e.g. helpers at the...

Pierre Dubois, Yassine Lefouili, and Stéphane Straub

vol. 132, n. 103655, February 2021

We use data from seven low and middle income countries with diverse drug procurement systems to assess the eect of centralized procurement on drug prices, and provide a theoretical mechanism that explains this eect. Our empirical analysis is based on exhaustive data on drug sales quantities and...

Michael Eber, Cass Sunstein, James K. Hammitt, and Jennifer Yeh

vol. 62, n. 8, February 2021, pp. 1–26

As health care becomes increasingly personalized to the needs and values of individual patients, informational interventions that aim to inform and debias consumer decision-making are likely to become important tools. In a randomized controlled experiment, we explore the effects of providing...

Tiziano De Angelis, Fabien Gensbittel, and Stéphane Villeneuve

vol. 46, n. 1, February 2021, pp. 28–60

This paper studies a 2-players zero-sum Dynkin game arising from pricing an option on an asset whose rate of return is unknown to both players. Using filtering techniques we first reduce the problem to a zero-sum Dynkin game on a bi-dimensional diffusion (X; Y ). Then we characterize the existence...

Andrew Rhodes, Makoto Watanabe, and Jidong Zhou

vol. 129, n. 2, February 2021, p. 421–464

This paper develops a new framework for studying multiproduct intermediaries when consumers demand multiple products and face search frictions. We show that a multiproduct intermediary is profitable even when it does not improve consumer search efficiency. The intermediary optimally stocks high-...

Helmuth Cremer, and Chiara Canta

Toronto, vol. 54, n. 1, February 2021, pp. 259–283