This paper examines how monetary expansion causes asset bubbles. When there is no monetary expansion, a bubbly asset is not created due to a hold-up problem. Monetary expansion increases buyers' money holdings, and then, dealers are willing to buy a worthless asset from sellers, in hopes of...

We use high frequency data on TV and radio advertising together with data on online sales for lottery tickets to measure the short run effects of advertising. We find them to be strong and to last for up to about 4 hours. They are the bigger the less time there is until the draw. We develop the...

We study the effects of limited attention on property prices and energy efficiency (EE) investments in the housing market. Using a novel dataset, we analyse over 5 million residential property sale transactions in England and Wales, each containing information about sale price, property and...

By facilitating the flow of information in society, communications technology (CT; e.g., newspapers, radio, television, the internet) can help terrorists to (i) spread their message, (ii) recruit followers, and (iii) coordinate among group members. However, CT also facilitates monitoring and...

How the internet affects job matching is not well understood due to a lack of data on job vacancies and quasi-experimental variation in internet use. This paper helps fill this gap using plausibly exogenous roll-out of broadband infrastructure in Norway, and comprehensive data on recruiters,...

In this paper, we present theory and global evidence on how mobile internet access affects desire and plans to emigrate. Our theory predicts that mobile internet access increases desire and plans to emigrate. Our empirical analysis combines survey data on 617,402 individuals from 2,120...

Social media are at the center of countless debates on polarization, misinformation, and even the state of democracy in various parts of the world. An essential feature of social media is the ranking algorithm that determines how content is presented to the users. This paper studies the dynamic...

Platforms may give preferential treatment to their own products in search results. Whether and how to regulate this self-preferencing behavior is an intensely debated antitrust issue. This paper identifies self-preferencing and quantifies its equilibrium welfare effects in Apple App Store. I...

We study peer influence in an online social network on a platform where consumers purchase music albums. They can follow their peers and become informed about their consumption choices. In particular, we are interested in how this affects consumers' exploration of new music that exhibits...

Ranking algorithms are the information gatekeepers of the Internet era. We develop a stylized framework to study the effects of ranking algorithms on opinion dynamics. We consider rankings that depend on popularity and on personalization. We find that popularity driven rankings can enhance...