We propose a framework for analyzing transformations of demand. Such transformations frequently stem from changes in the dispersion of consumers` valuations, which lead to rotations of the demand curve. In a wide variety of settings, profits are a U-shaped function of dispersion. A high level of...

This paper considers the impact of reviewers on sales of products of quality unknown to consumers. Sales occur simultaneously after consideration by a reviewer with a known level of bias. Consumers observe the reviewer`s decision and a private signal. We find that: (a) with flexible prices and...

Which are the basic strategic options of young scientists in the process of scientific competition? Which are the basic structural conditions influencing the outcome of strategic actions? What strategic choices should be made depending on given structural conditions? In thispaper we approach...

Gaps in welfare attainment between boys and girls in China have attractedinternational attention. In this paper demand analysis is used to try and uncoverthe factors which may be driving the emergence of these gender gaps.Drawing on household expenditure data from a poor (Sichuan) and rich...

The question of whether two drugs - namely alcohol and tobacco - are used as complements or substitutes is of crucial interest if side-effects of anti-smoking policies are considered. Numerous papers have empirically addressed this issue by estimating demand systems for alcohol and tobacco and...

Obesity has become a major health issue. Research in economics has providedimportant insights as to how technological progress reduced the relative price of food andcontributed to the increase in obesity. However, the increased availability of food might wellhave overstrained will power and led...

Neoclassical economic theory rules out systematic errors in consumptionchoice. According to the basic view, individuals know what they choose. They areable to predict how much utility an activity or a good produces for them now and inthe future and they can maximize their utility. This implies...

A century ago, Thorstein Veblen introduced socially contingent con-sumption into the economic literature. This paper complements the scarceempirical literature by testing his conjecture on South African householddata and nds that Black and Coloured households spend relatively moreon visible...

Corporate scandals are reflected in excessive top management compensation and fraudulent accounts ...

The introduction of a new product generation forces incumbents in network industries to rebuild their installed base to maintain an advantage over potential entrants. We study if backward compatibility can help moderate this process of rebuilding an installed base. Using a structural model of...