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Persistent link: https://www.econbiz.de/10013283959
High-speed market connections and information processing improve the ability to seize trading opportunities, raising gains from trade. They also enable fast traders to process information before slow traders, generating adverse selection, and thus negative externalities. When investing in fast...
Persistent link: https://www.econbiz.de/10011103486
High-speed market connections improve investors' ability to search for attractive quotes in fragmented markets, raising gains from trade. They also enable fast traders to observe market information before slow traders, generating adverse selection, and thus negative externalities. When investing...
Persistent link: https://www.econbiz.de/10011103546
Persistent link: https://www.econbiz.de/10011442828
Public “Beta” launches have become a preferred route of entry into the markets for new software products and web site …
Persistent link: https://www.econbiz.de/10005760643
Consider a firm advertising in a job matching agency with the aim of employing the most qualified workers. Its chances of success would be higher for a smaller number of competitor firms advertising in the same job matching agency, i.e. careerbuilder.com. How would the resulting competitive...
Persistent link: https://www.econbiz.de/10005789304
This paper surveys models of markets in which only some consumers are "savvy". I discuss when the presence of savvy consumers improves the deals available to all consumers in the market (the case of search externalities), and when the non-savvy fund generous deals for all consumers (ripoff...
Persistent link: https://www.econbiz.de/10011166054
We analyze the equilibrium size of networks under alternative market structures. Networks are characterized by positive size externalities (commonly called "network externalities"). That is, the benefits of the addition of an extra node (or an extra customer) exceed the private benefits accruing...
Persistent link: https://www.econbiz.de/10005101745
Many personally risky decisions, such as innovation and entrepreneurship, have the potential to increase overall welfare by creating positive externalities for society. Rewarding such prosocial risk-taking may be an important strategy in addressing societal challenges like, for example, the...
Persistent link: https://www.econbiz.de/10014293761
This paper revisits the path by which Coase developed the result now known as the Coase theorem, including the famous meeting at the home of Aaron Director during which Coase 'converted' a group of Chicago economists to his way of thinking. Drawing on published and archival sources, we discuss...
Persistent link: https://www.econbiz.de/10014316512