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Bullard, James B.; Singh, Aarti - C.E.P.R. Discussion Papers - 2009

We study a stylized theory of the volatility reduction in the U.S. after 1984 - the Great Moderation - which attributes part of the stabilization to less volatile shocks and another part to more difficult inference on the part of Bayesian households attempting to learn the latent state of the...

Persistent link: https://www.econbiz.de/10005048557

Payment Evasion

Buehler, Stefan; Halbheer, Daniel; Lechner, Michael - C.E.P.R. Discussion Papers - 2015

This paper models payment evasion as a source of profit by letting the firm choose the purchase price and the fine imposed on detected payment evaders. For a given price and fine, the consumers purchase, evade payment, or choose the outside option. We show that payment evasion leads to a form of...

Persistent link: https://www.econbiz.de/10011276378

Strategic Pricing and Entry under Universal Service and Cross-Market Price Constraints

Anton, James J; Weide, James H Vander; Vettas, Nikolaos - C.E.P.R. Discussion Papers - 1998

In this paper, we examine how cross-market price restrictions impact strategic entry and pricing decisions. A …

Persistent link: https://www.econbiz.de/10005792026

Markets: The Fulton Fish Market

Graddy, Kathryn - C.E.P.R. Discussion Papers - 2006

Centralized markets with large numbers of buyers and sellers are generally thought of as being competitive and well-functioning. However, an important role of centralized markets is matching heterogeneous products, such as fish, to buyers of these products. The high level of differentiation in...

Persistent link: https://www.econbiz.de/10005136669

Bargaining under the Illusion of Transparency

Madarász, Kristóf - C.E.P.R. Discussion Papers - 2015

An uninformed seller offers an object to a privately informed buyer. The buyer projects information and exaggerates the probability that the seller is informed. Letting the buyer bargain and name her own price raises the seller's payoff above the full-commitment payoff. Under seller-offer...

Persistent link: https://www.econbiz.de/10011168901

To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda

Fischer, Greg; Karlan, Dean S.; McConnell, Margaret; … - C.E.P.R. Discussion Papers - 2014

Pricing policy for any experience good faces a key tradeoff. On one hand, a price reduction increases immediate demand …

Persistent link: https://www.econbiz.de/10011083717

Limits to Arbitrage and Hedging: Evidence from Commodity Markets

Acharya, Viral V; Lochstoer, Lars; Ramadorai, Tarun - C.E.P.R. Discussion Papers - 2009

futures contracts. Their hedging demand is met by financial intermediaries who act as speculators, but are constrained in risk … 1980-2006, we show that producers’ hedging demand - proxied by their default risk - forecasts spot prices, futures prices …

Persistent link: https://www.econbiz.de/10005016244

Prediction Markets in Theory and Practice

Wolfers, Justin; Zitzewitz, Eric - C.E.P.R. Discussion Papers - 2006

Prediction Markets, sometimes referred to as 'information markets', 'idea futures' or 'event futures', are markets …

Persistent link: https://www.econbiz.de/10005662203

Manipulation of Metals Futures: Lessons from Sumitomo

Gilbert, Christopher L - C.E.P.R. Discussion Papers - 1997

The Sumitomo Corporation manipulated the London Metal Exchange (LME) copper price, which forms the pricing basis for … functioning and governance of London futures markets, and in particular of the LME. This paper argues that futures market … been insufficiently active in attempting to eliminate manipulations, price discovery on futures markets generates an …

Persistent link: https://www.econbiz.de/10005662332

Extracting Expectations about 1992 UK Monetary Policy from Option Prices

Söderlind, Paul - C.E.P.R. Discussion Papers - 1998

The UK pound left the ERM on 16 September 1992 after a period of turbulence. UK monetary policy soon shifted to lower short interest rates and an inflation target was announced. This paper uses daily option prices to estimate how the market’s probability distribution of the future Deutsche...

Persistent link: https://www.econbiz.de/10005791268