If producers have more information than consumers about goods' attributes, then they may use non-price (rather than price) adjustment mechanisms and, consequently, the market may reach a new equilibrium even if prices remain sticky. We study a situation where producers adjust the quantity (per...

If producers have more information than consumers about goods' attributes, then they may use non-price (rather than price) adjustment mechanisms and, consequently, the market may reach a new equilibrium even if prices don't change. We study a situation where producers adjust the quantity per...

There is evidence that 9-ending prices are more common and more rigid than other prices. We use data from three sources: a laboratory experiment, a field study, and a large U.S. supermarket chain, to study the cognitive underpinning and the ensuing asymmetry in rigidity associated with 9-ending...

In this paper, we analyze the economic structure of the world of wizards as depicted in the Harry Potter books, which we term Potterian economy, and offer an economist's perspective on it. We look at the economic structure of the life of Harry Potter and his co-actors as an economic model that...

Economic organization of the imaginary worlds depicted in popular literary works may be viewed as a mirror to public opinion on the economic organization of life. If a book becomes a bestseller, it is because the book conveys messages, feelings, and events the readers can relate to. In other...

We use U.S. county-level data containing 3,058 cross-sectional observations and 41 conditioning variables to study economic growth and explore possible heterogeneity in growth determination across 32 individual states. Using a 3SLS-IV estimation method, we find that all statistically significant...

We offer the first direct evidence of an implicit contract in a goods market. The evidence comes from the market for Coca-Cola. We demonstrate that the Coca-Cola Company left written evidence of its implicit contract with its consumers - a very explicit form of an implicit contract. The contract...

We use U.S. county-level data to estimate convergence rates for 22 individual states. We find significant heterogeneity; e.g., the California estimate is 19.9 percent and the New York estimate is 3.3 percent. Convergence rates are essentially uncorrelated with income levels.

Using unique retail and wholesale price data for 4,532 products carried by a major Midwestern grocery retailer, we find evidence of significant retail price rigidity during the Thanksgiving through Christmas holiday period relative to the rest of the year. We suggest that this pattern of holiday...

Existence of a cointegration relationship between two time series in the time domain imposes restrictions on the series zero-frequency behavior in terms of their squared coherence, phase, and gain in the frequency domain. I derive these restrictions by studying cross-spectral properties of a...