òòò½Íø

Taxes and Turnout: When the Decisive Voter Stays at Home

By Felix Bierbrauer, Aleh Tsyvinski, and Nicolas Werquin

òòò½Íø Review, February 2022

We develop a model of political competition with endogenous turn-out and endogenous platforms. Parties trade off incentivizing their supporters to vote and discouraging the supporters of the competing party from voting. We show that the latter objective i...

An Equilibrium Model of the International Price System

By Dmitry Mukhin

òòò½Íø Review, February 2022

What explains the central role of the dollar in world trade? Will the US currency retain its dominant status in the future? This paper develops a quantitative general equilibrium framework with endogenous currency choice that can address these questions...

Incomplete Information Bargaining with Applications to Mergers, Investment, and Vertical Integration

By Simon Loertscher and Leslie M. Marx

òòò½Íø Review, February 2022

We provide an incomplete information bargaining framework that captures the effects of differential bargaining power in markets with multiple buyers and multiple suppliers. The market is modeled as a mechanism that maximizes the expected weighted welfare ...

Hospital Network Competition and Adverse Selection: Evidence from the Massachusetts Health Insurance Exchange

By Mark Shepard

òòò½Íø Review, February 2022

Health insurers increasingly compete on their networks of medical providers. Using data from Massachusetts's insurance exchange, I find substantial adverse selection against plans covering the most prestigious and expensive "star" hospitals. I highlight a...

A Satellite Account for Health in the United States

By David M. Cutler, Kaushik Ghosh, Kassandra L. Messer, Trivellore Raghunathan, Allison B. Rosen, and Susan T. Stewart

òòò½Íø Review, February 2022

This paper develops a satellite account for the US health sector and measures productivity growth in health care for the elderly population between 1999 and 2012. We measure the change in medical spending and health outcomes for a comprehensive set of 80 ...

Consumer Information and the Limits to Competition

By Mark Armstrong and Jidong Zhou

òòò½Íø Review, February 2022

This paper studies competition between firms when consumers observe a private signal of their preferences over products. Within the class of signal structures that induce pure-strategy pricing equilibria, we derive signal structures that are optimal for f...

Fighting brands and mobile phone plans

[Research Highlight]

January 25, 2022

How do incumbent companies react to a new competitor?

Market Entry, Fighting Brands, and Tacit Collusion: Evidence from the French Mobile Telecommunications Market

By Marc Bourreau, Yutec Sun, and Frank Verboven

òòò½Íø Review, November 2021

We study a major new entry in the French mobile telecommunications market, followed by the introduction of fighting brands by the three incumbents. Using an empirical oligopoly model, we find that the incumbents' fighting brand strategies are difficult to...

Smoking bans and compensating differentials

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How do workers’ wages react to a sudden improvement in conditions?

CSWEP: Helping Faculty Help Students get into PhD Programs in Economics

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CSMGEP: Sarah Jacobson

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CSMGEP: Luisa Blanco

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CSMGEP: Neville Francis

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CSMGEP: Neil Ericsson

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Front Matter

òòò½Íø Journal: Microeconomics, February 2022

Cultural Affinity, Regulation, and Market Structure: Evidence from the Canadian Retail Banking Industry

By Hector Perez-Saiz and Hongyu Xiao

òòò½Íø Journal: Microeconomics, February 2022

We estimate a perfect information static entry game to study the effect of cultural entry barriers on entry and competition in the retail banking industry. Canada provides a favorable setting for analysis due to its high linguistic diversity, concentrated...

Dynamic Regret Avoidance

By Michele Fioretti, Alexander Vostroknutov, and Giorgio Coricelli

òòò½Íø Journal: Microeconomics, February 2022

In a stock market experiment, we examine how regret avoidance influences the decision to sell an asset while its price changes over time. Participants know beforehand whether they will observe the future prices after they sell the asset or not. Without fu...

Trust Building in Credence Goods Markets

By Yuk-Fai Fong, Ting Liu, and Xiaoxuan Meng

òòò½Íø Journal: Microeconomics, February 2022

We study trust building in credence-goods markets in a dynamic setting. When consumers' expected loss is low and it is efficient to fix only the more severe problem, there is no trade in the one-shot game. In the repeated game, an expert's honesty is moni...