In product markets, there exists substantial dispersion in prices for transactions of physically identical goods, and incumbent sellers sell at higher prices than entrants. This study develops a theory of dynamic pricing that explains these facts as results from the same fundamental friction:...

The growing popularity of online dating websites is altering one of the most fundamental human activities: finding a date or a marriage partner. Online dating platforms offer new capabilities, such as extensive search, big-data based mate recommendations and varying levels of anonymity, whose...

Using a representative sample of the U.S. adult population, we analyze which payment methods consumers use to pay other consumers (p2p) and how these choices depend on transaction and demographic characteristics. We additionally construct a random matching model of consumers with diverse...

Round numbers affect behavior in various domains, e.g., as prominent thresholds or focal points in bargaining. In line with earlier findings, residential real estate transactions in Germany cluster at round-number prices, but there are also interesting (presumably cultural) differences. We...

Round numbers affect behavior in various domains, e.g., as prominent thresholds or focal points in bargaining. In line with earlier findings, residential real estate transactions in Germany cluster at round-number prices, but there are also interesting (presumably cultural) differences. We...

This paper investigates experimentally the effects of arousing content on viewing choices and satisfaction in television consumption. We test the hypothesis that the portrayal of arousing content combines high attraction and low satisfaction and is thus responsible for sub-optimal choices. In...

This paper investigates experimentally the effects of arousing content on viewing choices and satisfaction in television consumption. We test the hypothesis that the portrayal of arousing content combines high attraction and low satisfaction and is thus responsible for sub-optimal choices. In...

In fractional ownership markets, consumers purchase a share in a property and can later exchange it with other owners through a secondary market. Forward-looking consumers may purchase low quality shares at a low price with the intention of trading up. This poses a serious problem. We show that...

We model the interaction between the marriage market and the intrahousehold allocation of resources. We do this within a setting that accounts for both economic gains to marriage (through public consumption) and unobserved non-material match quality, without relying on the transferable utility...