The housing rental market offers a unique laboratory for studying price stickiness. This paper is motivated by two facts: 1. Tenants' rents are remarkably sticky even though regular and expected recontracting would, by itself, suggest substantial rent flexibility. 2. Rent stickiness varies...

Retailers routinely allow consumers to negotiate a discount off the posted price, especially for big ticket items such as home appliances, furniture, automobiles, and real estate, as well as on online platforms such as Amazon, eBay and Alibaba. The profitability of such a strategy, relative to...

We study how the presence of a monthly revenue-based quota impacts a retailer's profits when prices are negotiated by a salesperson. Utilizing transaction level data for refrigerators, we first provide reduced form evidence that prices are impacted by the quota: the negotiated discounts are...

Prior research on 'strategic voting' has reached the conclusion that unanimity rule is uniquely bad: it results in destruction of information, and hence makes voters worse off. We show that this conclusion depends critically on the assumption that the issue being voted on is exogenous, i.e.,...

Prior research on "strategic voting" has reached the conclusion that unanimity rule is uniquely bad: it results in destruction of information, and hence makes voters worse off. We show that this conclusion depends critically on the assumption that the issue being voted on is exogenous, i.e.,...

Prior research on quot;strategic votingquot; has reached the conclusion that unanimity rule is uniquely bad: it results in destruction of information, and hence makes voters worse off. We show that this conclusion depends critically on the assumption that the issue being voted on is exogenous,...

When will a landlord prefer to supply both land and credit to a tenant rather than allow the lender to borrow from a separate moneylender? The paper shows that if tenancy contracts are obtained prior to contracting with the moneylender, and the tenant has limited liability, interlinked deals...

Rational economic agents always engage in maximizing their payoffs. The endeavor in this paper is to show that when the parties involved in the bargaining process (game) have similar discount factors and when the number of periods of the game tends to infinity or very large, then the surplus is...

A characteristic of many bargaining situations is that the negotiators represents the interests of a set of parties (trade unions, political parties, etc.) with composite interests, whose bargaining behaviour is regulated by some collective decision mechanism. In this paper we provide a natural...

This paper develops and estimates a search and bargaining model designed to measure the welfare loss associated with frictions in oligopoly markets with negotiated prices. We use the model to quantify the consumer surplus loss induced by the presence of search frictions in the Canadian mortgage...