We study a model with local public goods in which agents’ crowding e¤ects are formally distinguished from their taste types. It has been shown that the core of such an economy can be decentralized with anonymous admission prices (which are closely related to cost share prices). Unfortunately, such a price system allows for an arbitrary relationship between the public goods level in a given juri...

The conflict between modern neoclassical and traditional Keynesian theories of the business cycle centers upon the pricing mechanism.' In neoclassical models, prices are fully flexible. They represent the continuous optimization of economic agents and the continuous intersection of supply and demand. In Keynesian models, prices are often assumed to be sticky. They do not necessarily equilibrate...

The Internet is perceived to increase market efficiency, and thus reduce price dispersion. Yet the empirical evidence to support this proposition is mixed. Internet retailers of homogeneous products may choose to actively differentiate their stores and offerings in order to avoid competing just on price. We explore how differentiation among these retailers affects pricing and web traffic. We pr...

A Working Paper is the author's intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from [email protected] Click here to access the INSEAD Working Paper collection We study the dynamic pricing implications of a new, behaviorally motivated reference price mechanism...

This paper uses an adapted version of the linear tracing procedure, suggested by Harsanyi and Selten (1988), in order to discriminate between two types of multiple Nash equilibria. Equilibria of the same type are pay-off equivalent in the analysed multiple-unit unit price auction where two sellers compete in order to serve a fixed demand. The equilibria where the firm with the larger capacity b...

M often employ market response models as decision aids and historical information of competitors’ market outcomes to aid their competitive decisions in oligopolistic settings. However, little is known about how access to a decision aid or the availability of competitors’ market outcomes impact a firm’s competitive decisions (e.g., prices) or market outcomes resulting from those decisions (e.g.,...

The way that companies choose to define market segments influences which products they develop, drives the features incorporated in those products, and shapes how they take them to market. Segmentation schemes define who is framed as competitors; and how large specific market opportunities are believed to be. Most marketers segment their markets along lines defined by the characteristics of the...

We study procurement auctions in which, as is common in practice, a group of sellers (incumbents, qualified bidders) is given an advantage, based, for example, on better reliability, quality, or incumbency status. We show conditions under which for any given first price handicap auction, there is a simple second-price design which dominates it. This generalizes a previous result for the case of...

THE VARIABILITY OF SEQUENCE-SPACE SYNESTHESIA Sequence-space synesthesia (SSS) is a common condition in which ordinal sequences such as months, numbers or the letters of the alphabet are perceived to occupy spatial locations in the mind’s eye or peripersonal or extrapersonal space (e.g., Price and Mentzoni, 2008; Jonas and Jarick, 2013). For example, thinking about a month may elicit the visuos...