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Information Acquisition in Competitive Markets: An Application to the US Mortgage Market

By Jeremy M. Burke, Curtis R. Taylor, and Liad Wagman

òòò½Íø Journal: Microeconomics, November 2012

How do price commitments impact the amount of information firms acquire about potential customers? We examine this question in the context of a competitive market where firms search for information that may disqualify applicants. Contracts are incomplete ...

Helping Consumers Know Themselves

By Emir Kamenica, Sendhil Mullainathan, and Richard Thaler

òòò½Íø Review, May 2011

Firms sometimes know more about a consumer's expected usage than the consumer herself. We explore the consequences of this reversal in the information asymmetry. We analyze the consequences of making consumers more informed about themselves. While making ...

Preventing Crime Waves

By Philip Bond and Kathleen Hagerty

òòò½Íø Journal: Microeconomics, August 2010

We study the design of enforcement mechanisms when enforcement resources are chosen ex ante and are inelastic ex post. Multiple equilibria arise naturally. We identify a new answer to the old question of why non-maximal penalties are used to punish modera...