This paper presents a generalised framework to understand mixed-strategy sales behaviour with informative advertising. By introducing competition in the utility space into a clearinghouse sales model, we oer a highly tractable framework that can i) provide a novel welfare analysis of...

The well-known double marginalization problem understates the inefficiencies arising from vertical relations in consumer search markets where consumers are uninformed about the wholesale prices charged by manufacturers to retailers. Con- sumer search provides a monopoly manufacturer with an...

In Rome, if you start digging, chances are you will nd things. We consider a famous complaint that justies the underdeveloped Roman metro system: \if we tried to build a new metro line, it would probably be stopped by archeological nds that are too valuable to destroy, so we would have wasted...