In expert markets, different pricing schemes generate different financial incentives for sellers to defraud customers. Using rich microdata on New York City taxi rides, we examine the difference between trip distance of non-local passengers and that of comparable local passengers, and explore to...

In the dynamic two-sided market environment, overpricing one side of the market not only discourages demand on that side but also discourages participation on the other side. Over time, this process can lead to a death spiral. This paper develops a dynamic structural model of the video game...

The market for plug-in electric vehicles (EVs) exhibits indirect network effects in that there is interdependence between consumer decision of EV purchase and investor decision of charging station deployment. Through a stylized model, we demonstrate that indirect network effects on both sides of...

We show that, besides the well-known advantage of antithetic acceleratation reducing the variance of simulation error, it also reduces bias associated with estimating variance terms such as unobserved heterogeneity variance parameters. We provide proofs of the relevant asymptotics and empirical...

This paper studies the role of observational learning in search markets where buyers do not take the list price as a take-it-or-leave-it offer. Using a unique data from the Beijing housing market, we estimate a structural model in which buyers infer a seller’s reservation value from the...

We examine used car dealers' roles as intermediaries. We present empirical evidence supporting that cars sold by dealers have higher quality: (1) dealer transaction prices are higher than private market prices and this dealer premium increases in the age of the car as a ratio and is hump-shaped...