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Alexandre Cornière (de) et Greg Taylor
n° 17-827, juillet 2017, révision octobre 2019
We present a novel rationale for bundling in vertical relations. In many markets, upstream firms compete to be in the best downstream slots (e.g., the best shelf in a retail store or the default application on a platform). Bundling by a multiproduct upstream firm can soften competition for slots by...
Christian Gollier
n° 17-828, juillet 2017
Suppose that the decision-maker is uncertain about the variance of the payoff of a gamble, and that this uncertainty comes from not knowing the number of zero-mean i.i.d. risks attached to the gamble. In this context, we show that any n-th degree increase in this variance risk reduces expected...
Patrick Fève, Alban Moura et Olivier Pierrard
n° 17-829, juillet 2017, révision août 2018
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...
Emmanuelle Auriol, Julie Lassébie, Amma Panin, Eva Raiber et Paul Seabright
n° 17-831, juillet 2017
This paper presents experimental evidence exploring how insurance might be a motive for religious donations by members of a Pentecostal church in Ghana. We ran- domize enrollment into a commercially available funeral insurance policy and let church members allocate money between themselves and a...
Catherine Bobtcheff, Jérôme Bolte et Thomas Mariotti
vol. 84, n° 3, juillet 2017, p. 969–1014
We model academic competition as a game in which researchers ¯ght for priority. Researchers privately experience breakthroughs and decide how long to let their ideas mature before making them public, thereby establishing priority. In a two-researcher, symmetric environment, the resulting preemption...
Marc Ivaldi et Vicente Lagos
vol. 53, juillet 2017, p. 267–305
This paper aims to evaluate the coordinated effects of horizontal mergers by simulating its impact on firms’ critical discount factors. The simulation setting considers a model with a random coefficient discrete choice demand and heterogeneous price-setting firms on the supply side. The results...
Christoph Rheinberger et Nicolas Treich
vol. 67, n° 3, juillet 2017, p. 609–636
In light of climate change and other global threats, policy commentators sometimes urge that society should be more concerned about catastrophes. This paper reflects on what society’s attitude toward low-probability, high-impact events is, or should be. We first argue that catastrophe risk can be...
Emmanuelle Auriol et Jean-Philippe Platteau
vol. 127, juillet 2017, p. 395–412
The relationship between religion and politics is explored from a theoretical standpoint, assuming that religious clerics can be coopted by the ruler acting as an autocrat. The comparative effects of decentralized versus centralized religions on the optimal level of cooperation between the autocrat...
Denis Lanzanova et Arnaud Reynaud
vol. 137, juillet 2017, p. 184–194
This study presents the first meta-analysis on the economic value of ecosystem services delivered by lakes. A worldwide data set of 699 observations drawn from 133 studies combines information reported in primary studies with geospatial data. The meta-analysis explores antagonisms and synergies...
Daniel F. Garrett
vol. 104, juillet 2017, p. 595–612
We study the optimal mechanism in a dynamic sales relationship where the buyer's arrival date is uncertain, and where his value changes stochastically over time. The buyer's arrival date is the first date at which contracting is feasible and is his private information. To induce immediate...
