We analyze the effect of consumer information on firm pricing in a model where consumers search for prices and matches with products. We consider two types of consumers. Uninformed consumers do not know in advance their match values with firms, whereas informed consumers do. Prices are lower the...

We study price competition in the presence of search costs and product differentiation. The limit cases of the model are the "Bertrand Paradox," the "Diamond Paradox," and Chamberlinian monopolistic competition. Market prices rise with search costs and decrease with the number of firms. Prices...

We analyze a principal's ability to discriminate between honest and dishonest agents, who have private information about the circumstances of the exchange. Honest agents reveal circumstances truthfully as long as the mechanism is sufficiently fair: the probability that an equilibrium allocation...