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Economists have long been puzzled by event-ticket underpricing: underpricing both reduces revenue and encourages socially wasteful rent-seeking by ticket brokers. This paper studies the introduction of auctions into this market by Ticketmaster. We first show theoretically that Ticketmaster's...
Persistent link: https://www.econbiz.de/10012948086
Persistent link: https://www.econbiz.de/10011739663
Economists have long been puzzled by event-ticket underpricing: underpricing reduces revenue for the artist, and encourages socially wasteful rent-seeking by ticket brokers. Why not use an auction to set price correctly? This paper studies the introduction of auctions into this market by...
Persistent link: https://www.econbiz.de/10012974530
Persistent link: https://www.econbiz.de/10014228924
The amount of computational power devoted to anonymous, decentralized blockchains such as Bitcoin's must simultaneously satisfy two conditions in equilibrium: (1) a zero-profit condition among miners, who engage in a rent-seeking competition for the prize associated with adding the next block to...
Persistent link: https://www.econbiz.de/10012453003
This paper presents a simple price-theory approach to Covid-19 lockdown and reopening policy. The key idea is to conceptualize R ≤ 1 as a constraint, allowing traditional economic and societal goals to be the policy objective, all within a simple static optimization framework. This approach...
Persistent link: https://www.econbiz.de/10012482312
This paper reports on an experimental test of a new market design that is attractive in theory but makes the common and potentially unrealistic assumption that "agents report their type"; that is, that market participants can perfectly report their preferences to the mechanism. Concerns about...
Persistent link: https://www.econbiz.de/10012456229
A well-developed theoretical literature -- dating back at least to Nordhaus (1969) -- has analyzed optimal patent policy design. We re-present the core trade-off of the Nordhaus model and highlight an empirical question which emerges from the Nordhaus framework as a key input into optimal patent...
Persistent link: https://www.econbiz.de/10012456783
This paper builds a model of stock exchange competition tailored to the institutional and regulatory details of the modern U.S. stock market. The model shows that under the status quo market design: (i) trading behavior across the seemingly fragmented exchanges is as if there is just a single...
Persistent link: https://www.econbiz.de/10012479804
We propose a criterion of approximate incentive compatibility, strategy-proofness in the large (SP-L), and argue that it is a useful second-best to exact strategy-proofness (SP) for market design. Conceptually, SP-L requires that an agent who regards a mechanism's "prices" as exogenous to her...
Persistent link: https://www.econbiz.de/10012453940