Electronic sharing markets are contributing to a paradigm shift, from consuming products to accessing products. This paper studies the effects of sharing markets on the prices for new products and on product design in terms of durability. In a dynamic economy with overlapping generations,...

The sharing of durable goods in a dynamic ownership economy is attractive, since it has the potential to realize gains from trade via short-term transfers of usage rights. We develop a model in which a set of agents, who are heterogeneous in their likely need of a durable good, make purchase...

This paper introduces a dynamic model of the stochastic repayment behavior exhibited by delinquent credit-card accounts. Based on this model, we construct a dynamic collectability score (DCS) which estimates the account-specific probability of collecting a given portion of the outstanding debt...

We consider the problem of finding the optimal time to switch between two measurable cash-flow streams. A complete characterization of the set of solutions is obtained in terms of adjoint variables which measure the available gain from deviations. An iterative procedure for the computation of...

To aid in the description and estimation of the tremendous recent growth in the collaborative economy, we provide a model for the dynamics of sharing, subject to fixed costs and imperfect price formation. The sharing economy comprises a set of infinitely lived, heterogeneous suppliers, who take...

Newcomb's problem is viewed as a dynamic game with an agent and a superior being as players. Depending on whether or not a risk-neutral agent's confidence in the superior being, as measured by a subjective probability assigned to the move order, exceeds a threshold or not, one obtains the...

Electronic intermediaries have become pervasive in sales transactions for many durables, such as cars, power tools, and apartments. Yet only recently have they successfully tackled the challenge of enabling parties to share such goods. A key impediment to sharing is a lender's concern about...

In this paper we consider the problem of efficiently allocating a given resource or object repeatedly over time. The agents, who may temporarily receive access to the resource, learn more about its value through its use. When the agents' beliefs about their valuations at any given time are...