This paper shows that a manufacturer may benefit from parallel trade. In addition to an intuitive condition about the effect of demand shocks, this occurs when competitive retailers must order inventories before they know the realization of demand and for products whose sale value drops at the...

There currently exist two competing approaches in the literature on the optimal provision of public goods. The standard approach highlights the importance of distortionary taxation and distributional concerns. The new approach neutralizes distributional concerns by adjusting the non-linear...

Although social pressure may affect the behavior of individuals, it is very hard to evaluate empirically. A soccer field is an attractive testing ground in the sense that both performance and social pressure by spectators are measurable. The drawback is that the number of spectators is an...