Product demand is modeled as a linear function of attributes including price, guaranteed delivery time, service level and/or quality. For different market segments, market characteristics, namely customer sensitivity on those attributes, are different. A firm or a supplier could be characterized...

We investigate how investor overconfidence and margin trades affect market efficiency around a market crash. We find that the price delay before a crash is about twice the price delay after a crash and that negative information travels slowly only when market sentiment is high because of...

Flat consumption taxes have no effect on long run aggregate capital formation when markets are complete. In this note, we provide conditions on utility under which a similar statement is true under incomplete markets. When these conditions are satisfied, using a flat consumption tax to finance...