In a two-sided asymmetric information market, the role of the accuracy of consumers' imperfect and private information on the level of fraud, incidence of fraud and trade under price rigidity is examined. Consumers receive a costless but noisy private signal of quality. The product offered in...

This paper develops an enduring idea: price rigidity occurs because repeat-purchasing customers in retail markets learn their regular firm's price at each purchase but are informed of other firms' prices less frequently. Although potentially having important implications for macroeconomics,...

This paper is inspired by real-world phenomena that firms lose customers based on imprecise information and take a long time to recover. If consumers are playing an ordinary repeated game with fixed partners, there is no clear reason why recovery slowly happens. However, if consumers are playing...

We examine the impact of airline codesharing on consumer choice behavior in non-stop international route markets. Using stated preference data, we document that consumer valuation of flights by alien foreign carriers is significantly higher if these flights are offered as codeshare products by...