This paper presents a theoretical model to investigate the potential environmental consequences of weather index based insurance, a tool for mitigating weather risk that is gaining momentum in developing countries. We model potential effects of index insurance for pastoralists on animal stocking...

There is evidence that asymmetric information in the housing market between sellers and buyers is an important source of mispricing, especially when involving out-of-town buyers (Chinco and Mayer 2016, Kurlat and Stroebel 2015). In this paper we show that a specific cognitive bias, the...

We study dynamic markets where product safety is unobserved by consumers. Perfect, but costly, audits and an exogenous noisy signal can provide information regarding seller type. Without the noisy signal, sellers do not disclose product safety without auditing. If audits are too expensive, a...