We develop a model of monetary exchange that avoids several common criticisms of the recent microfoundations literature. First, rather than random matching, we assume that buyers know the location of all sellers, and hence the process of finding a partner is deterministic, although trade is...

I model a firm that invests in both the quality of its product and in providing information to the market. Consumers learn about the quality through both news the firm cannot influence and promotion it controls. This ability to promote creates and enhances incentives for investment. Promotion...

A profit-maximizing monopolist sells multi-attribute consumer data to a firm. The seller is uncertain about which consumer characteristic the buyer is interested in forecasting and how much the buyer values information. In order to screen among buyers along both margins, the seller chooses a...

We present a general discrete choice framework for analyzing household formation and dissolution decisions in an equilibrium limited-commitment collective framework that allows for marriage both within and across birth cohorts. Using Panel Study of Income Dynamics and American Community Survey...

We model the dynamics of discrimination and show how its evolution can identify the underlying source. We test these theoretical predictions in a field experiment on a large online platform where users post content that is evaluated by other users on the platform. We assign posts to accounts...

I study endogenous network formation in an environment in which individuals want to forecast a stochastic state and it is costly for them to communicate with others to exchange some exogenously observed information. Due to the existence of information complementarities, individuals' preferences...

A fad is something that is popular for a time, then unpopular. For example, in the 1960s tailfins on cars were popular, in the 1970s they were not. I study a model in which fads are driven through the channel of imperfect information. Some players have better information about past actions of...

We explore model misspecification in an observational learning framework. Individuals learn from private and public signals and the actions of others. An agent's type specifies her model of the world. Misspecified types have incorrect beliefs about the signal distribution, how other agents draw...

This paper develops and implements a new approach for separately identifying preference and opportunity parameters of a two-sided search and matching model in the absence of data on choice sets. This approach exploits information on the dynamics of matches: how long it takes for singles to form...

We model the dynamics of discrimination and show how its evolution can identify the underlying cause. We test these theoretical predictions in a field experiment on a large online platform where users post content that is evaluated by other users on the platform. We assign posts to accounts that...