Simple additive weighting is a well-known method for scoring and ranking alternative options based on multiple attributes. However the pitfalls associated with this approach are not widely appreciated. For example, the apparently innocuous step of normalizing the various attribute data in order to obtain comparable figures leads to markedly different rankings depending on which normalization is...

Videogames now enable players to spend virtual fortunes on exotic virtual goods and even create and sell virtual artefacts. Online consumers may also browse endlessly through virtual marketplaces and create and display virtual goods. These virtual commodities are desired and enjoyed as if they were real, but are not actually bought, or owned in a material sense – often resulting in frustration ...

I identify here important changes in how retailing functions are performed due to the penetration of the digital economy. First, in the distribution of goods for final consumption the same functions as before are performed independently of stores and their location. Second, in the distribution of inputs for household production of services the core products that consumers pay for explicitly are...

To examine the effect of the variance of consumer ratings on product pricing and sales we develop a model which considers goods that are characterized by two types of attributes: experience attributes and experience attributes that were transformed in search attributes by consumer ratings that we call informed search attributes. For pure informed search goods, we find that with increasing varia...

W develop a framework for the optimal bundling problem of a multiproduct monopolist, who provides goods to consumers with private valuations that are random draws from a distribution with heavy tails. We show that in the Vickrey auction setting, the buyers prefer separate provision of the goods to any bundles. We also provide a complete characterization of the optimal bundling strategies for a ...

Diversity is a key issue in the provision of critical publicly provided goods such as clean drinking water and education. To develop institutions that address this issue, it is critical that we understand the mechanisms through which diversity and public goods are related. A simple model of public good provision is developed to demonstrate that there are potentially measurable differences betwe...

We study a simple model of the world economy where the engine of growth is the flows of ideas. Ideas are assumed to diffuse randomly across pair of goods, where the processes used in the production of the lower cost good is adopted. We assume that producers in a country can learn from all sellers of goods to this country. We analyze how trade in goods, and impediments to it, affect this diffusi...

We introduce a new interpretation of two re­ lated notions conditional utility and utility independence. Unlike the traditional inter­ pretation, the new interpretation render the notions the direct analogues of their prob­ abilistic counterparts. To capture these no­ tions formally, we appeal to the notion of util­ ity distribution, introduced in previous paper. We show that utility distributi...