Bucket pricing entails a prepaid price and a maximum consumption limit, which requires consumers to make advance purchase decisions before their consumption needs are fully revealed. We propose a dynamic model that involves how consumers form expectations of future consumption needs, learn to...

This paper examines risk-taking incentives in banks under different accounting regimes with capital regulation. In the model the bank's decisions of capital issuance and investment policy are jointly determined. Given exogenous minimum capital requirement, the bank is more likely to issue equity...

The digitization of information goods necessitates a rethinking of their production and distribution economics. An N-good bundling model with multi-dimensional consumer preferences is developed to study the key factors that determine the optimal bundling strategy. Using analytical and empirical...

When explaining others’ behaviors, achievements, and failures, it is common for people to attribute too much influence to the individual’s disposition and too little influence to the structural and situational influences impinging on the actor. Although performance is a joint function of...

Recent developments in intertemporal asset pricing theory focus on two sets of fundamental determinants of asset returns. Models with complete markets emphasize aggregate variables such as per capita consumption. Such models have not performed well empirically. Models with incomplete markets...

We study how the presence of non-exclusive contracts limits the amount of insurance provided in a decentralized economy. We consider a dynamic Mirrleesian economy in which agents are privately informed about idiosyncratic labor productivity shocks. Agents sign privately observable insurance...

This paper estimates the price for restructuring risk in the U.S. corporate bond market during 1999-2005. Comparing quotes from default swap (CDS) contracts with a restructuring event and without, we find that the average premium for restructuring risk represents 6% to 8% of the swap rate...

Multicast and unicast traffic share and compete for network resources. To facilitate efficient and equitable resource allocation between traffic types, this paper advocates a costbased approach to multicast pricing. When prices are set to reflect actual network resource consumption, market...

Prior research documents that individual stock returns respond to earnings differently under new accounting standards, regulations, or changes in enforcement. This paper examines whether this result extends to the aggregate stock market. We take a macro perspective and study the properties of...

Recently fixed pricing and auctions have been brought together in a new pricing format that offers bidders the option of prematurely ending an auction at a fixed price. eBay calls this a “Buy-it- Now” auction, uBid calls this “UBuy it” and Yahoo auctions refer to this as a “Buy Now”....