Quality Provision in Interrelated Markets

Quality and Interrelated Growth

This paper develops a model in which a rapid expansion of the quality frontier by rich countries pushes poorer countries down the quality ladder and thereby leads to a widening dispersion of quality around the world as well as sluggish growth in poorer countries. This paper documents these features in the data, such as a recent rise in the dispersion of quality exported around the world between...

Competitive information provision in sequential search markets

We study competitive information provision in search markets. Consider the used car market: as a consumer searches, she receives noisy signals of the values of cars. She can consult an expert (say Carfax or a mechanic) to find out more about the true value before deciding whether to purchase a particular car or keep searching. Prior research has studied the pricing problem faced by a monopolist...

Strategic Liquidity Provision in Limit Order Markets

Information provision in over-the-counter markets

1042-9573/$ see front matter 2011 Elsevier In doi:10.1016/j.jfi.2011.05.001 q An earlier version of this paper was completed ⇑ Corresponding author. E-mail addresses: [email protected] (T.V. D This paper analyzes endogenous information provision and purchase in over-the-counter (OTC) markets. On the supply side the optimal strategy of an information provider consists of selling identical info...

Quality Provision in Two-Sided Markets: the Case of Managed Care

I develop a two-sided market model to study the role played by indirect externalities in shaping the pricing and quality decisions of managed care organizations. I find that managed care quality, access to physicians, and physician reimbursements decrease when the cost of providing quality or the population health risk increases. These decreases are more pronounced when the externality exerted ...