To entice customers to purchase, sellers on online platforms often misrepresent the quality of their goods/services, e.g., by manipulating consumer opinion. We analyze an oligopoly where sellers, heterogeneous in their true quality, compete by jointly choosing their prices and the extent of...

This paper studies the role of loss-averse consumers' expectations about their future consumption in the pricing policy of a monopolistic firm in a dynamic setting. The firm offers a contract consisting of two units of service and the consumer makes two sequential consumption choices: to buy the...

This paper studies a bilateral trade game where (i) the buyer is uncertain about her desired consumption amount (needs) of a perfectly divisible good and receives a signal about it, (ii) and the seller posts a take-it-or-leave-it price to the buyer. The seller's information design trades off...

Nodal pricing has emerged from a theoretical approach to a practicable and efficient tool for network and congestion mangement. Experiences from North America and New Zealand have proven nodal pricing to be workable without serious technical problems. Continental European electricity grids like...

We discuss the nonparametric approach to profit efficiency analysis at the firm and industry levels in the absence of complete price information, and propose two new insights. First, choosing one commodity (whose price is known) as a numeraire good enables us to measure profit inefficiency in...

Dynamic pricing is increasingly popular in the perishable good markets, but its effect under competition is uncertain due to the potential for the prisoner's dilemma. I study profit and welfare implications of dynamic pricing techniques in a competitive setting. I construct a structural dynamic...

We study price pressures, i.e., deviations from the efficient price due to risk-averse intermediaries supplying liquidity to asynchronously arriving investors. Empirically, New York Stock Exchange intermediary data reveals economically large price pressures, 0.49% on average with a half life of...

Adequately designed prices are essential to achieve efficient coordination between the electricity network and market participants. However, consumer prices comprise several, possibly distorting price components. In an analytical model, we examine different regulatory settings, consisting of...