We take advantage of a natural experiment to document an emergence of a new price ending that has the same effects as 9-endings. In January 2014, the Israeli parliament has passed a law prohibiting the use of non 0-ending prices. We find that one year after 9-ending prices have disappeared,...

We study Israel’s “price rounding regulation” of January 1, 2014, which outlawed non-0-ending prices, forcing retailers to round 9-ending prices, which in many stores comprised 60%+ of all prices. The regulation’s goals were to eliminate (1) the rounding tax—the extra amount consumers...

We use novel and unique data to study the effect of price changes in the market for luxury and middle class homes. We find that luxury home sales respond less to price changes than the middle-class home sales; in the market for luxury homes, past prices affect current prices; luxury home prices...

This paper uses Nash equilibrium reversion as an optimal tool for clearing dynamic prices and wages. Various exogenous competitive rigidities determine the balanced growth path of the efficiency wage and the outcome of repeated household/firm wage bargaining decisions. A location model is used...

This paper uses a long time series of German employment data to test the theory of Ngai & Pissarides (2007). The theory suggests that the shift of employment shares from manufacturing to services is due to divergent growth rates of total factor productivity (TFP) in the two sectors. To test the...

Es wird in diesem Working Paper untersucht, in wie weit sich das Canvas Business Model zum agilen Business Model Management für Unternehmen in der Vorgründungs- und Gründungsphase eignet.

We conduct an event study to (1) analyze whether investors revise their expectations about a music album’s success when new chart information is published and (2) estimate how these revised expectations affect the value of a music label. We find that expectations about the success of an album...

Electronic informal (eWOM) is a rising promoting background for customers which affect their evaluation of various existing brands and items, for example, versatile brands through online correspondence channels. The World Wide Web is a magnificent pattern of the thousand years that the key...

The aim of this paper is to analyze bidders’ behavior, comparing individuals and groups’ decisions within the dollar auction framework. This game induces subjects to fall prey into the paradigm of escalation, which is driven by agents’ commitment to higher and higher bids. Whenever each...

While a basic theoretical principle in public economics assumes that individuals' behaviour is fully-optimizer with respect to the introduction of a tax, an increasing body of research is presenting evidence that agents decision making is often affected by non-negligible cognitive biases, which...