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Jieying Hong et Sébastien Pouget
février 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 et James M. Sallee
vol. 13, n° 1, février 2021, p. 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...
Pierre Dubois, Yassine Lefouili et Stéphane Straub
vol. 132, n° 103655, février 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...
Doh-Shin Jeon et Jay Pil Choi
vol. 13, n° 1, février 2021, p. 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-...
Tiziano De Angelis, Fabien Gensbittel et Stéphane Villeneuve
vol. 46, n° 1, février 2021, p. 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...
Tiziana Assenza, Alberto Cardaci et Dominico Delli Gatti
n° 19-1055, février 2021, révision février 2021
Existing evidence suggests that individuals frequently misperceive the value of their wealth. We test the existence, and estimate sign and magnitude, of an inaccurate perception of individual net worth. By conducting a laboratory experiment, we find that most subjects perceive a given net worth as...
Ayşegül Kanay, Denis Hilton, Laetitia Charalambides, Jean-Baptiste Corrégé, Eva Inaudi, Laurent Waroquier et Stéphane Cezera
n° 21-1191, février 2021
We compared the effectiveness of basket goal-setting to product information strategies on sustainable consumption in a simulated online supermarket. Experiment 1 found a significant effect of basket goal setting techniques with carbon basket feedback in either numerical or graphical form on the...
Lukas Dargel
n° 21-1192, février 2021
Taking advantage of a generalization of the matrix formulation introduced by LeSage and Pace (2008), this article presents improvements in the computational performance and flexibility of three estimators of spatial econometric interaction models. By generalizing computational techniques for the...
Ingela Alger, Konrad Dierks et Jean-François Laslier
n° 21-1193, février 2021, révision avril 2025
What drives voters’ decisions to participate in large elections under costly voting, despite the rational expectation that this has no impact on the outcome? We propose a new model of ethical voters, by positing that they have Kantian or semi-Kantian preferences. With such preferences, voters...
Linqun Liu et Nicolas Treich
n° 21-1194, février 2021
This paper studies the role of risk attitudes in determining the optimality of winner-take-all contests. We compare the typical singlewinner lottery contest with two alternatives, both spreading the rewards to more players: through holding multiple prize-giving lottery competitions or through...
