assumptions. The desire to appear benevolent can also lead firms to practice both third-degree and intertemporal price … cost, why increases in inflation seem to affect mostly the frequency of price adjustment without having sizeable effects on … the size of price increases and why firms often announce their intent to increase prices in advance of actually doing so …

This paper proposes a theory of price rigidity consistent with survey evidence that firms stabilize prices out of … fairness to their consumers. The theory relies on two psychological assumptions. First, customers care about the fairness of … prices: fixing the price of a good, consumers enjoy it more at a low markup than at a high markup. Second, customers …

costs to learn each firm's price. Search costs are endogenized: obfuscation is equated with unobservable actions that make … it more time-consuming to inspect a product and learn its price. We note two mechanisms by which obfuscation can affect … search costs are already so high that consumers are willing to purchase at the highest equilibrium price in the absence of …

We randomized school quality information onto the listings of a nationwide housing website for low-income families. We … neighborhood choice that incorporates imperfect information and potentially biased beliefs. We find that imperfect information and … school quality conditional on neighborhood characteristics. If we had ignored this information problem, we would have …

retailers are strong indicators of higher probability to pass in the Minilab test and higher retail price. Within quality … "substandard"). While both types of poor-quality drugs can be dangerous, they differ in health consequence, price, and potential … understand how price and non-price signals can help distinguish counterfeits, substandard drugs, and passing drugs …

frictions in oligopoly markets with negotiated prices. We use the model to quantify the consumer surplus loss induced by the … presence of search frictions in the Canadian mortgage market, and evaluate the relative importance of market power, inefficient … allocation, and direct search costs in explaining the loss. Our results suggest that search frictions reduce consumer surplus by …

Search frictions can explain why the "law of one price" fails in retail markets and why even firms selling commodity … products have pricing power. In online commerce, physical search costs are low, yet price dispersion is common. We use browsing … data from eBay to estimate a model of consumer search and price competition when retailers offer homogeneous goods. We find …

direct dollar savings. Generic drug use may also yield indirect savings if it lowers the average price of those brand …-name producers to lower prices. However, consumer choices between generic and brand-name drugs could affect the average price of … consumers are more likely to substitute generics when the price gap is great. This effect is substantial: a 10% increase in the …

-independent models of fairness. Our results have implications for price discrimination, labor markets, and dynamic pricing …People's fairness preferences are an important constraint for what constitutes an acceptable economic transaction, yet … play an important role in shaping perceptions of fairness. Buyers used to high market prices, for example, are more likely …