Showing 1 - 10 of 121
I analyze if the excessive quality disclosure finding of the “classical literature” extends to environments in which consumers have a downward-sloping demand. While the answer is affirmative, there are at least two situations under which disclosure is socially insufficient: (1) when there...
Persistent link: https://www.econbiz.de/10010988264
In democracies, trade policy is the result of interactions among many agents with different agendas. In accordance with this observation, we construct a dynamic model of legislative trade policy-making in the realm of distributive politics. An economy consists of different sectors, each of which...
Persistent link: https://www.econbiz.de/10011056333
type="main" <p>This paper analyzes in a spatial framework how much information a seller discloses about the variety he sells when he faces a buyer with a privately known taste for variety. I identify an equilibrium in which, for each possible variety, the seller's optimal strategy consists of...</p>
Persistent link: https://www.econbiz.de/10011038017
We characterize the product line choice and pricing of a monopolist as the upper envelope of net marginal revenue curves to the individual product demand functions. The equilibrium product varieties to include in a product line are those yielding the highest upper envelope. In a central case...
Persistent link: https://www.econbiz.de/10011145421
This paper analyzes informative advertising in a duopoly market with differentiated products when consumer search is costless. If consumers are fully rational, exposure to a single advertisement is sufficient for them to obtain complete market information. In this case, firms undersupply...
Persistent link: https://www.econbiz.de/10005146558
With fast-track authority (FTA), the US Congress delegates trade-policy authority to the President by committing not to amend a trade agreement. We suggest an interpretation in which Congress uses FTA to forestall destructive competition between its members for protectionist rents. We show that...
Persistent link: https://www.econbiz.de/10009652772
In democracies, trade policy is the result of interactions among many agents with different agendas. In accordance with this observation, we construct a dynamic model of legislative trade policy-making in the realm of distributive politics. An economy consists of different sectors, each of which...
Persistent link: https://www.econbiz.de/10009228889
The Baron-Ferejohn multilateral bargaining model predicts a payoff-unique stationary subgame perfect equilibrium (SSPE) in which players' equilibrium strategies are not uniquely determined. In this note, we present a modified version of the Baron-Ferejohn model by introducing veto players and...
Persistent link: https://www.econbiz.de/10009144401
Persistent link: https://www.econbiz.de/10005500179
Persistent link: https://www.econbiz.de/10005531621