We assess how survey expectations impact production and pricing decisions on the basis of a large panel of German firms … future. The probability to raise (lower) production is 15 percentage points higher for optimistic (pessimistic) firms than …

Coasian bargaining. In particular, even when the preferences and production technologies differ among the agents, the … decentralized system can still result in globally efficient allocation …

, which have been traditionally treated as pure domestic policies. The imposition of such standards reallocates production …, consistent with stylized facts that we present. The fixed cost improves allocative efficiency, by reallocating production towards … high-quality firms, who under-produce in the market allocation. Furthermore, the fixed cost generates a positive …