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We analyze the diffusion of rival information in a social network. In our model, rational agents can share information sequentially, unconstrained by an exogenous protocol or timing. We show how to compute the set of eventually informed agents for any network, and show that it is essentially...
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We study human trafficking in a marriage market model of prostitution. When trafficking is based on coercion, trafficking victims constitute a non-zero share of supply in any unregulated prostitution market. We ask if regulation can eradicate trafficking and restore the outcome that would arise...
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The constraint on informal finance is commonly taken to be high costs and limited supply. But the majority of informal investors - family and friends - is often willing to supply funds at negative returns, and yet many borrowers tap family and friends only as a last resort. We explain this...
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This paper develops a model of nonlinear pricing of storable goods. We show that storability imposes novel constraints on a monopolist's ability to extract surplus. We then show that the attempt to relax these constraints can generate cyclical patterns in pricing and sales, even when consumers...
Persistent link: https://www.econbiz.de/10010232403
We study optimal monopoly pricing with evasive consumers. The monopolist uses consumer data to estimate demand and menu pricing to optimally screen the residual uncertainty about consumers' preferences. Third degree price discrimination encourages data-conscious consumers to manipulate their...
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Social insurance is often linked to marriage. I model how such linkage affects the marriage market, and exploit Sweden's elimination of survivors insurance to demonstrate economically important responses along several behavioral margins in this market. Entry into marriage reflects a demand for...
Persistent link: https://www.econbiz.de/10010530523