The purpose of this rejoinder is to clarify key areas of agreement and disagreement with Abaluck and Gruber and address aspects of their reply to our comment, both of which appear in the December 2016 issue of the American Economic Review. Readers of our exchange may wonder how we can reach such...

We develop a structural model for bounding welfare effects of policies that alter the design of differentiated product markets when some consumers may be misinformed about product characteristics and inertia in consumer behavior reflects a mixture of latent preferences, information costs,...

Neoclassical and psychological models of consumer behavior often make divergent predictions for the welfare effects of paternalistic policies, leaving wide scope for researchers' choice of a model to influence their policy conclusions. We develop a framework to reduce this model uncertainty and...