This paper models the attention allocation of portfolio investors. Investors choose the composition of their information subject to an information flow constraint. Given their expected investment strategy in the next period, which is to hold a diversified portfolio, in equilibrium investors...

We study the asset pricing implications of attention allocation theories. These theories allow us to predict the arrival of private information by observing investors' behavior. Specifically, attention allocation theories suggest that the arrival of private news to local investors lead to an...

Importers rarely observe the price of every good in every market because of informational frictions. In this paper, we aim to explain how the presence of such frictions shapes the pattern of trade across countries. To this end, we introduce rationally inattentive importers in the Ricardian trade...

In this paper, I model competition between legal and pirate products. In this framework, the government affects competition through police spending and taxes on the legal products. Therefore, the government can choose the optimal combination of spending and taxes that fit better its goals. I...

In a comment to my paper "The Economics of IPR Protection Policies," Martínez-Sánchez (2007) shows that in my model under certain conditions the presence of piracy increases the quantity produced by the legal monopolist firm. In this note, I show how the algebra used in Martínez-Sánchez...

Search engines are important access channels to news content of traditional newspapers with Google alone responsible for 35% of online visits to news outlets in the European Union. Yet, the effects of Google Search on market competition and information diversity have received scant attention....

The vast majority of the empirical literature on crime has focused on the effects of "supply-side" shocks such as the severity of laws and enforcement. In this paper we analyze the effects of a large and unexpected "demand-side" shock: the drop in daytime population in Washington, DC caused by...

In this paper we empirically explore the make-or-buy decisions of peripheral services in manufacturing plants using detailed information on a data set from a new plant-level survey from 926 plants distributed in all manufacturing industries in Spain. In particular, survey respondents are asked...