Theoretically and experimentally, we generalize the analysis of acquiringa company (Samuelson and Bazerman 1985) by allowing for competition ofboth, buyers and sellers. Naivety of both is related to the idea that higherprices exclude worse qualities. While competition of naive buyers...

Are commonly known beliefs essential for bidding behavior in asymmetric auctions? Our experimental results suggest that not informing participants how values are randomly generated does not change behavior much and may even make it appear more rational.

A large, mature and robust economic literature on pay for performance now exists, whichprovides a useful framework for thinking about pay for performance systems. I use thelessons of the literature to discuss how to design and implement pay for performance inpractice....

This paper evaluates alternative strategic models of competition and market structure inonline retailing, and makes comparisons with traditional retailing. Online consumers areless concerned than traditional consumers about spatial characteristics and moreconcerned about hidden quality...

There have been many claims that the Internet represents a nearly frictionless market. This paper extends the empirical results on online retailing by studying prices for nearly homogenous services - holiday packages - matched across conventional and Internet channels. On first sight, lower...

This paper deals with the introduction of stock options in an (dy-namically) incomplete securities market.

This paper establishes the result that the seller prefers posted-price selling when the cost of information acquisition is high, and auctions when it is low. We view corporate bonds as an instance of the former case, and government bonds as an instance of the latter.