The way that consumers make payments is changing rapidly and attracts important current policy interest. This paper develops and estimates a structural model of adoption and use of payment instruments by U.S. consumers. We use a cross-section of data from the Survey of Consumer Payment Choice, a...

We study price competition in markets with a large number (in magnitude of hundreds or thousands) of potential competitors. We address two methodological challenges: simultaneity bias and high dimensionality. Simultaneity bias arises from joint determination of prices in competitive markets. We...

Consumers engage in costly search to evaluate the increasing number of product options available from online retailers. Presenting the best alternatives at the beginning reduces search costs associated with a consumer finding the right product. We use rich data on consumer click-stream behavior...

Non-compliance with medication therapy remains an unsolved and expensive problem for health care systems around the world. Yet we know little about the factors that determine a patient's decision to follow treatment recommendations. This study uses a unique panel dataset comprising all...

We study vertical integration in the form of financial ownership as a way to improve the bargaining position of a firm in sequential negotiations. In our model an upstream monopolist bargains sequentially with two downstream firms over production agreements. If the bargaining sequence is...

In this paper, we revisit the problem of search with learning about the price distribution, as introduced by Rothschild (1974). For searchers with Dirichlet priors, we develop a novel characterization of the optimal search behavior. The advantage of our solution relative to the characterization...