Heterogeneous beliefs among market participants can lead to questionable speculative trading that goes beyond any risk-sharing motives. We demonstrate that such unwarranted betting behavior in market equilibrium can be mitigated by introducing nonlinear pricing for ambiguous contracts, without...

Calls to boycott a foreign country aim to push a share of domestic consumers to cut their consumption of goods imported from the targeted country. How do boycotts differ from sanctions? Should boycotters target all of the country’s products, or should they focus on a restricted set of sectors?...