unpaid household care. To secure quality and access, government must also play a coordinating role that vouchers alone can …

We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with …

We offer a theory of how the combination of budget constraints and insurance drives up prices. A natural context for … our theory is the health care market, where drug prices can be very high. Our model predicts that monopoly prices for … orphan drugs are inversely related to the prevalence up until a maximum price. This is supported by empirical evidence in the …

We study price formation in the standard model of consumer search for differentiated products but allow for search cost … important but often neglected aspect of the price mechanism. Recognizing the role the equilibrium price plays in consumers …

What explains apparent price rigidity over the business cycle? This paper shows that price fluctuations may be hidden … procyclicality is driven by a shift in price setting behavior, where local stores use extended warranty discounts to make base … durable demand less price elastic and, as a result, increase sales of durable goods. Discounts on extended warranties were …