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Competition in Multi-characteristics Spaces: Hotelling was Almost Right

Irmen, Andreas; Thisse, Jacques-François - C.E.P.R. Discussion Papers - 1996

Lancasterian models of product differentiation typically assume a one-dimensional characteristics space. We show that standard results on prices and locations no longer hold when firms compete in a multi-characteristics space. In the location game with n characteristics, firms choose to maximize...

Persistent link: https://www.econbiz.de/10005123740

The Catch-22 of External Validity in the Context of Constraints to Firm Growth

Fischer, Greg; Karlan, Dean S. - C.E.P.R. Discussion Papers - 2015

We document the presence of multiple and varied constraints to small and medium firm growth. This presents both a practical problem for business training programs and a challenge to academic economists trying to identify mechanisms though which these programs may affect outcomes. External...

Persistent link: https://www.econbiz.de/10011184078

Discount Pricing

Armstrong, Mark; Chen, Yongmin - C.E.P.R. Discussion Papers - 2013

We investigate the marketing practice of framing a price as a discount from an earlier price. We discuss two reasons why a discounted price---rather than a merely low price---can make a consumer more willing to purchase. First, a high initial price can indicate the product is high quality....

Persistent link: https://www.econbiz.de/10011083448

When Everyone Runs for the Exit

Pedersen, Lasse Heje - C.E.P.R. Discussion Papers - 2009

The dangers of shouting ``fire'' in a crowded theater are well understood, but the dangers of rushing to the exit in the financial markets are more complex. Yet, the two events share several features, and I analyze why people crowd into theaters and trades, why they run, what determines the...

Persistent link: https://www.econbiz.de/10005082543

Use of Banking Services in Emerging Markets--Household-Level Evidence

Beck, Thorsten; Brown, Martin - C.E.P.R. Discussion Papers - 2011

of banking services is related to household characteristics, as well as to bank ownership, deposit insurance and creditor … protection. At the household level we find that the holding of a bank account, a bank card, or a mortgage increases with income … banks are associated with a stronger use of banking services. Foreign bank ownership is also associated with a higher use of …

Persistent link: https://www.econbiz.de/10009205063

The Impact of Creditor Protection on Stock Prices in the Presence of Credit Crunches

Hale, Galina B; Razin, Assaf; Tong, Hui - C.E.P.R. Discussion Papers - 2009

Data show that better creditor protection is correlated across countries with lower average stock market volatility. Moreover, countries with better creditor protection are observed to have suffered lower decline in their stock market indexes during the current financial crisis. To explain this...

Persistent link: https://www.econbiz.de/10004969130

Exports Versus FDI Revisited: Does Finance Matter?

Buch, Claudia M.; Kesternich, Iris; Lipponer, Alexander; … - C.E.P.R. Discussion Papers - 2010

The crisis on international financial markets that started in 2007 has shown the potential links between the financial sector and the real economy. Exports and foreign direct investment (FDI) have declined, presumably not only because of a lack of demand, but also because of restricted access of...

Persistent link: https://www.econbiz.de/10008468589

Incentives to Innovate and the Decision to Go Public or Private

Ferreira, Daniel; Manso, Gustavo; Silva, André C. - C.E.P.R. Discussion Papers - 2010

We model the impact of public and private ownership structures on firms' incentives to choose innovative projects. Innovation requires the exploration of new ideas with potential advantages but unknown probability of success. We show that it is optimal to go public when firms wish to exploit the...

Persistent link: https://www.econbiz.de/10008468600

Housing market regulation and the social demand for job protection

Decreuse, Bruno; van Ypersele, Tanguy - C.E.P.R. Discussion Papers - 2010

Controlling for country fixed effects, there is a positive and statistically significant relationship between the degree of housing market regulation (HMR) and the strictness of employment protection legislation (EPL) in OECD countries. We provide a model in which HMR increases foreclosure costs...

Persistent link: https://www.econbiz.de/10008468671

Optimal Interventions in Markets with Adverse Selection

Philippon, Thomas; Skreta, Vasiliki - C.E.P.R. Discussion Papers - 2010

We study interventions to restore efficient lending and investment when financial markets fail because of adverse selection. We solve a design problem where the decision to participate in a program offered by the government can be a signal for private information. We charac terize optimal...

Persistent link: https://www.econbiz.de/10008468692