We argue that there exists a problem of adverse selection in the provision of advertising which makes it impossible to establish direct markets for it. The media are regarded as intermediaries that can channel advertising and allocate it efficiently by screening consumers. This role of media may...

We argue that there exists a problem of adverse selection in the provision of advertising which makes it impossible to establish direct markets for it. The media is regarded as an intermediary that can channel advertising and allocate it efficiently by screening consumers. This role of media may...

We report on several experiments on the optimal allocation of ownership rights. The experiments confirm the property rights approach by showing that the ownership structure affects relationship-specific investments and that subjects attain the most efficient ownership allocation despite starting...