Issue 4

December 2015

Prices, Profits, and Preference Dependence

We develop a new approach to discrete choice demand for differentiated products, using copulas to separate the marginal distribution of consumer values for product varieties from their dependence rela

First Degree Price Discrimination Goes to School

Personalized pricing is widely discussed but seldom observed, making studies of its efficacy rare.

Using Forward Contracts to Reduce Regulatory Capture

Optimal incentive regulation uses transfers.

Search Costs and Investment in Quality

In this paper we analyze how lower search costs affect firms' incentives to invest in quality. We identify two conflicting effects.

Do international roaming alliances harm consumers?

We develop a model of international roaming in which mobile network operators (MNOs) compete both on the wholesale market to sell roaming services to foreign operators and on the retail market for sub

Welfare Analysis of Regulating Mobile Termination Rates in the U.K.

We develop a calibrated simulation model of the UK mobile telephony market and use it to analyze the effects of reducing mobile termination rates (MTRs) as recommended by the European Commission.

Platform Pricing at Sports Card Conventions

We study a new data set of US sports card conventions from the perspective of the pricing theory of two-sided markets.

The Informational Role of Product Trade-Ins for Pricing Durable Goods

This research theorizes that sellers of durable goods can utilize inferences about the buyer’s willingness to pay based not only on her decision to trade in the old good but also on its characteristic

The Intergenerational Transmission of Automobile Brand Preferences

We document a strong correlation in the brand of automobile chosen by parents and their adult children, using data from the Panel Study of Income Dynamics.