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The hypothesis that financial markets punish traders who make relatively inaccurate forecasts and eventually eliminate the effect of their beliefs on prices is of fundamental importance to the standard modeling paradigm in asset pricing. We establish necessary and sufficient conditions for...
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I develop a new theory of marketing costs and introduce it into a model of trade with product differentiation and firm …
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Firms spend substantial resources on marketing and selling. Interpreting this as evidence of frictions in product …
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