This paper studies static rational inattention problems with multiple actions and multiple shocks. We solve for the optimal signals chosen by agents and provide tools to interpret information processing. By relaxing restrictive assumptions previously used to gain tractability, we allow agents...

We study sequential search without priors. Our interest lies in decision rules that are close to being optimal under each prior and after each history. We call these rules robust. The search literature employs optimal rules based on cutoff strategies, and these rules are not robust. We derive...

When selling multiple products with asymmetric uncertainty, should the seller disclose product information so that customers do not have to incur any cost to resolve their uncertainties; if so, which product should the seller choose? To address these questions, we consider a monopolist selling...

Using data on over 3.5 million firm-bank relationships, I document new facts suggesting that search frictions are pervasive in the market for small business loans. Motivated by this evidence, I develop a theory of firm-bank matching where firms incur costs to search for banking partners. The...

Assessing the quantitative relevance of match quality and search frictions for house price dispersion is key to understanding house price formation and the importance of uninsurable housing wealth shocks. In this paper, we use a unique auction-level data set from Norway, combined with a...

Whether and how workers search on the job depends on their beliefs about pay and working conditions in other firms. Yet little is known about workers' knowledge of outside pay. We use a large-scale survey of full-time German workers, linked to their Social Security records, to elicit pay...

This paper evaluates the impact of market-oriented structural reforms, in particular labor market policies, social assistance programs, and trade liberalization on long run unemployment, wage inequality, and the distribution of employment across sectors in a small open economy with search...

A public economics framework is used to consider how pharmaceuticals should be priced when at least some of the research and development incentive comes from sales revenues. Familiar techniques of public finance are used to relax some of the restrictions implied in the standard use of Ramsey...

This paper considers a delegation game between one multi-input firm and one single-input firm engaging in Cournot competition in the downstream market. Both firms purchase a standard input from a core input supplier, and the multi-input firm also needs a supplementary input provided by an...

Consumer consent regulation is the cornerstone of modern data privacy regulation such as the European GDPR and the Californian CCPA. By ensuring that consumers can reject any harmful data collection, the regulation seems an effective tool for protecting consumers against price discrimination. By...