The current credit crunch and volatility in the financial markets is primarily blamed on two circumstances: some consumers’ misuse of mortgage credit and some mortgage lenders’ making credit available to borrowers who could hardly satisfy their credit obligations. This is an ideal time to reexamine the long-run experience concerning consumer’s use of both mortgage credit and non mortgage consum...

We study effects of direct-to-consumer advertising (DTCA) in the prescription drug market. There are two pharmaceutical firms providing horizontally differentiated (branded) drugs. Patients differ in their susceptibility to the drugs. If DTCA is allowed, this can be employed to induce (additional) patient visits. Physicians perfectly observe the patients' type (of illness), but rely on informat...

The rising costs of health care have forced changes in institutions that provide health care services to patients. Doctors, hospitals, insurance companies, and drug manufacturers have changed business practices to trim costs and maximize profits. One practice exploited by pharmaceutical companies is the freedom to advertise prescription drug products.' Direct-to-consumer advertising can effecti...