In this paper we investigate the relationship between news sources and media firms. Although empirically important, this channel for supply-driven media bias has not previously been analyzed in economics literature. We model the relationship as an informal contract based on trust and punishment,...

If bidders are uncertain whether the auctioneer sticks to the announced reserve, some bidders respond by strategic non-participation, speculating that the auctioneer may revoke the reserve. However, the reserve inadvertently signals the auctioneer’s type, which drives a unique separating and a...

A principal uses security bid auctions to award an incentive contract to one among several agents in the presence of hidden action and hidden information. Securities range from cash to equity and call options. “Steeper” securities are better surplus extractors that narrow the gap between the...

Although the relationship between natural resources and civil war has received much attention, little is known about the underlying mechanisms. Controversies and contradictions in the stylized facts persist because resource extraction is treated as exogenous while in reality fighting affects...

We consider a monopolist who sells identical objects of common but unknown value in a herding-prone environment. Buyers make their purchasing decisions sequentially, and rely on a private signal as well as We consider a monopolist who sells identical objects of common but previous buyers’...

We study a two-sided market where a platform attracts firms selling differentiated products and buyers interested in those products. In the unique subgame perfect equilibrium of the game, the platform fully internalizes the network externalities present in the market and firms and consumers all...

We study optimal experimentation by a monopolistic platform in a two-sided market. The platform provider is uncertain about the strength of the externality each side is exerting on the other. Setting participation fees on both sides, it gradually learns about these externalities by observing...

This paper presents a model of media competition with free entry when media operators are financed both from advertisers and customers. The relation between advertising receipts and sales receipts, which are both complementary and antagonist, is different if media operators impose a price or a...

Why do people who normally refrain from committing illegalities become digital pirates? In this paper we use a theoretical model of digital piracy combined with a game-theoretic mechanism of social norm formation to argue that no social stigma is attached to digital piracy because the latter has...

The paper’s objective is to assess price discrimination in magazine subscriptions in the Brazilian market. Oster and Scott-Morton (2005) had advanced a price discrimination mechanism in which the ratio between subscription and newsstand prices would be positively associated to the extent that...