We study the effect of price caps on the provision of costly effort by pharmaceutical firms using variation in drug discounts generated by a price regulation program that allows eligible hospitals to purchase outpatient drugs at steep discounts. These discounts directly affect drug...

Price discrimination in input markets may be driven by differences in buyers' (i) demands, (ii) costs, or (iii) ‘replacement threats,' in which a buyer obtains favorable pricing by threatening to source an input from a competitor. I analyze the importance of differences in buyers' replacement...

Producers frequently provide retailers with financial incentives to secure distribution of their products. These payments often take the form of vendor allowances: lump-sum transfers to retailers that do not directly depend on quantity sold. I study equilibrium effects of vendor allowances when...

We analyze the impact of a temporary shock to food supply on households’ dietary choices. We use hurricane-induced closures of grocery stores, focusing on temporary closures. Results show that store closures influence households’ purchasing patterns even after the grocery store has reopened....