We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise in the variance of productivity growth. Evidence...

Of the many proposals to reverse the obesity epidemic, the most contentious is the use of price-based interventions such as the fat tax. Previous investigations of the efficacy of such initiatives in altering consumption behavior yielded contradictory findings. In this article, we use six years...

The operations management discipline has made substantial progress developing analytical models to help firms make tactical and strategic decisions (e.g., inventory control, assortment planning). The application of these models to real contexts requires several inputs, such as an estimate of the...

As businesses become more sophisticated and welcome new technologies, artificial intelligence-based methods are increasingly being used for firms’ pricing decisions. In this review article, we provide a survey of research in the area of AI and pricing. On the upside, research has shown that...

Increasingly more countries are adopting new commodity taxes to discourage consumption of socially undesirable or unhealthy products. When considering implementation of such taxes, the current policy and academic discussions have focused on potential outcomes due to price changes. In this paper,...

We study the price effects of consolidation in the car rental industry using three cross-sections of price data from US airport markets spanning the years 2005 to 2016. The auto rental industry went through a series of mergers during this period, leading to a significant increase in market...

The well documented phenomenon of countercyclical prices goes against intuition as basic economic theory predicts a price increase when there is an outward shift in the demand curve. In this research, we provide a consumer heterogeneity based explanation for why the prices of seasonal products...