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Gabaix, Xavier - 2017

and combining those signals with priors to form posteriors. These posterior expectations exhibit as-if discounting: agents … forecasting (e.g., those with more intelligence) exhibit less discounting. Agents with more domain-relevant experience exhibit … less discounting. Older agents exhibit less discounting (except those with cognitive decline). Agents who are encouraged to …

Persistent link: https://www.econbiz.de/10012960695

Bundling Among Rivals : A Case of Pharmaceutical Cocktails

Lucarelli, Claudio - 2010

We empirically analyze the welfare effects of cross-firm bundling in the pharmaceutical industry. Physicians often treat patients with "cocktail" regimens that combine two or more drugs. Firms cannot price discriminate because each drug is produced by a different firm and a physician creates the...

Persistent link: https://www.econbiz.de/10013138761

Competition and Price Dispersion in the U.S. Airline Industry

Borenstein, Severin; Rose, Nancy E. - 2021

This papers analyzes dispersion in the prices that an airline charges to different customers on the same route. Such variation in airlines fares is substantial: the expected absolute difference in fares between two of an airline's passengers on a route averages thirty-six percent of the...

Persistent link: https://www.econbiz.de/10013229357

Discount Rates

Cochrane, John H. - 2011

, including portfolio theory, accounting, cost of capital, capital structure, compensation, and macroeconomics …

Persistent link: https://www.econbiz.de/10013126211

The Choice of Discount Rate for Climate Change Policy Evaluation

Goulder, Lawrence H. - 2012

Nearly all discussions about the appropriate consumption discount rate for climate-change policy evaluation assume that …

Persistent link: https://www.econbiz.de/10013101826

The Discount Rate for Public Policy Over the Distant Future

Li, Qingran - 2018

The choice of discount rate has a significant impact on net benefit estimates when costs today have benefits over long time horizons. Standard U.S. government practice for cost–benefit analysis is to bound such analysis using two alternative rates. These rates are meant to represent the rate...

Persistent link: https://www.econbiz.de/10012906264

The Discounted Euler Equation : A Note

McKay, Alisdair - 2016

We present a simple model with income risk and borrowing constraints which yields a “discounted Euler equation.” This feature of the model mutes the extent to which news about far future real interest rates (i.e., forward guidance) affects current outcomes. We show that this simple model...

Persistent link: https://www.econbiz.de/10012995524

Excess Volatility : Beyond Discount Rates

Giglio, Stefano - 2016

We document a form of excess volatility that is irreconcilable with standard models of prices, even after accounting for variation in discount rates. We compare prices of claims on the same cash flow stream but with different maturities. Standard models impose precise internal consistency...

Persistent link: https://www.econbiz.de/10012997883

Remedies for Price Overcharges : The Deadweight Loss of Coupons and Discounts

Polinsky, A. Mitchell; Rubinfeld, Daniel L. - 2021

This article evaluates two different remedies for consumers who have been injured by a price overcharge on the sale of a good. Under a coupon remedy, injured consumers are awarded coupons that can be used for a limited period of time to purchase the good at a price below that which prevails...

Persistent link: https://www.econbiz.de/10013234387

A Model of Add-On Pricing

Ellison, Glenn - 2022

This paper examines a competitive model of add-on pricing, the practice of advertising low prices for one good in hopes of selling additional products (or a higher quality product) to consumers at a high price at the point of sale. The main conclusion is that add-on pricing softens price...

Persistent link: https://www.econbiz.de/10014030891

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