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How Does Competition Affect Reputation Concerns? Theory and Evidence from Airbnb

Rossi, Michelangelo - 2019

I show how changes in competition affect the power of reputation to induce sellers to exert effort. The impact of …. To guide the empirical analysis, I develop a model of reputation where the relative number of hosts and guests affects … the value of building a reputation through effort. In this framework, more competition depresses hosts' profits and leads …

Persistent link: https://www.econbiz.de/10012857911

Quality Differentiation in Durable Goods Monopoly Always Yields Strictly Positive Profits

Laussel, Didier; Long, Ngo Van - 2021

A monopolist producing vertically differentiated durable goods can offer in each period a sequence of price-quality menus to segment the market. We show that, contrary to the Coase conjecture for the homogeneous durable good monopoly, thanks to the ability to produce differentiated durable...

Persistent link: https://www.econbiz.de/10013324224

The End of Tourist Traps : A Natural Experiment on the Impact of Tripadvisor on Quality Upgrading

Donati, Dante - 2022

Asymmetric information can distort market outcomes. I study how the online disclosure of information affects consumers’ behavior and firms’ incentives to upgrade product quality in markets where information is traditionally limited. I first build a model of consumer search with firms’...

Persistent link: https://www.econbiz.de/10014080609

Self-Preferencing, Quality Provision, and Welfare in Mobile Application Markets

Teng, Xuan - 2022

Platforms may give preferential treatment to their own products in search results. Whether and how to regulate this self-preferencing behavior is an intensely debated antitrust issue. This paper identifies self-preferencing and quantifies its equilibrium welfare effects in Apple App Store. I...

Persistent link: https://www.econbiz.de/10014243079

Risk Exposure and Acquisition of Macroeconomic Information

Roth, Christopher; Settele, Sonja; Wohlfart, Johannes - 2021

We conduct an experiment with a representative sample from the US to study households’ demand for macroeconomic information. Respondents who learn of a higher personal exposure to unemployment risk during recessions increase their demand for an expert forecast about the likelihood of a...

Persistent link: https://www.econbiz.de/10013315172

Reverse Bayesianism : Revising Beliefs in Light of Unforeseen Events

Becker, Christoph; Melkonyan, Tigran A.; Proto, Eugenio; … - 2021

Bayesian updating is the dominant theory of learning. However, the theory is silent about how individuals react to …

Persistent link: https://www.econbiz.de/10013227484

Adaptive Agents May Be Smarter than You Think : Unbiasedness in Adaptive Expectations

Palestrini, Antonio; Gallegati, Mauro; Delli Gatti, Domenico - 2021

Agents forming adaptive expectations generally make systematic mistakes. This characterization has fostered the rejection of adaptive expectations in macroeconomics. Experimental evidence, however, shows that in complex environments human subjects frequently rely on adaptive heuristics –...

Persistent link: https://www.econbiz.de/10013217385

Dynamic Rational Inattention and the Phillips Curve

Afrouzi, Hassan; Yang, Choongryul - 2021

-driven theory of dynamic pricing in which the Phillips curve slope is endogenous to systematic aspects of monetary policy. In our …

Persistent link: https://www.econbiz.de/10013250042

Heterogeneous Information, Subjective Model Beliefs, and the Time-Varying Transmission of Shocks

Macaulay, Alistair - 2022

Using a novel decomposition, I show that systematic relationships between information and subjective models across agents distort the aggregate transmission of shocks in a general class of macroeconomic models. I document evidence of such a systematic correlation between household information...

Persistent link: https://www.econbiz.de/10013289696

The Effects of Monetary Policy : Theory with Measured Expectations

Roth, Christopher; Wiederholt, Mirko; Wohlfart, Johannes - 2023

We study the effects of monetary policy on aggregate consumption combining a heterogeneous agent model with measured expectations under different policy counterfactuals. We express the consumption of non-hand-to-mouth households as a function of expectations only and elicit all expectations...

Persistent link: https://www.econbiz.de/10014262696