We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An important source of gains from trade in these markets is the heterogeneity in the willingness to pay for higher-quality (newer) goods, but transaction costs are an impediment to instantaneous...

This paper develops a model of nonlinear pricing of storable goods. We show that storability imposes novel constraints on a monopolist's ability to extract surplus. We then show that the attempt to relax these constraints can generate cyclical patterns in pricing and sales, even when consumers...

I develop a model of collaboration between tournament participants in which agents collaborate in pairs, and an endogenous structure of collaboration is represented by a weighted network. The agents are forward-looking and capable of coordination; they value collaboration with others and higher...

We study the properties of von Neumann-Morgenstern farsightedly stable sets in application to matching models. We show that the result by Diamantoudi and Xue (2003) for hedonic games can be extended to a general matching with contracts framework: a collection of singleton stable sets constitutes...

We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An important source of gains from trade in these markets is the heterogeneity in the willingness to pay for higher-quality (newer) goods, but transaction costs are an impediment to instantaneous...

We quantitatively investigate the allocative and welfare effects of secondary markets for cars. Gains from trade in these markets arise because of heterogeneity in the willingness to pay for higher-quality (i.e., newer) goods, but transaction costs are an impediment to instantaneous trade. We...

We study optimal monopoly pricing with evasive consumers. The monopolist uses consumer data to estimate demand and menu pricing to optimally screen the residual uncertainty about consumers' preferences. Third degree price discrimination encourages data-conscious consumers to manipulate their...