E-commerce is the fastest growing subsector within retail trade, yet the exact nature of competition between physical stores and the online channel is thinly studied empirically. Following a period of rapid growth, national aggregate establishment counts for the bookstore industry declined by...

We study the two-way interaction between central banks and financial markets using a beauty contest framework. The analysis identifies when asset prices reveal useful information about fundamentals and when they reflect back the central bank's pronouncements. In equilibrium, the central bank is...

We study the two-way interaction between central banks and financial markets using a beauty contest framework. The analysis identifies when asset prices reveal useful information about fundamentals and when they reflect back the central bank’s pronouncements. In equilibrium, the central bank...

We show how limited disclosure of the central bank’s private information to select audiences facilitates policy flexibility between scheduled monetary policy meetings. We also clarify when such disclosure is welfare-enhancing. Full paper available at https://doi.org/10.1016/j.econlet.2020.109371

How does a political leader’s messaging during a pandemic influence social distancing by citizens? We model the strategic choice of narrative in a beauty contest setting where the leader seeks to eliminate the disease. The leader’s resolve to eliminate the disease affects her narrative in a...