experimentally the behavioral forces stipulated in their theory. The evidence confirms the model's prediction that there is a …

unique equilibrium, which is separating. Higher-quality sellers post higher prices, so price signals quality. The arrival … higher continuation values. For some parameter values, higher-quality sellers post the full-information price; for other … values these sellers have to post a higher price to keep lower-quality sellers from mimicking them. In an extension, we show …

misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory. -- Pricing under risk ; probability …

This paper takes advantage of a natural experiment to examine the relationship between the price and saliency of health …

side by increasing the extent or the price of the service. In the market for taxi rides, our moral hazard manipulation …