Abstract: We analyze the optimal provision of information in a procurement auction with horizontally differentiated goods. The buyer has private information about her preferred location on the product space and has access to a costless communication device. A seller who pays the entry cost may...

This paper presents a model of collusion in vertically differentiated industries where firms have the option to make their products distinguishable to consumers by attaching a brand. We show that if consumers’ preferences are linear in the quality dimension and their beliefs satisfy a standard...

We study vertical relations in markets with consumer and retailer search. Retailers search to learn manufacturers' prices. We obtain three important new results. First, we explain why empirical distributions of retail prices are bi- modal, with a regular price and a sales price. Second, under...

This paper deals with information acquisition and communication in networked organizations. Agents receive private signals about a payoff-relevant parameter and may communicate it to other players to whom they are linked. I derive a key condition that ensures truthful communication. Since the...

This paper studies observational learning in a consumer search environment. In our model, consumers observe the purchasing decision of a predecessor before deciding which rm to visit. We show that if consumers emulate their predecessor and initiate their search at the rm she purchased from, a...

En este estudio se evalúan los efectos estáticos de una reciente propuesta de reforma a la actual estructura arancelaria aplicada por Colombia. La propuesta, realizada por el gobierno, estaba dirigida a racionalizar dicha estructura y a propiciar un mejoramiento de la productividad de la...

Measuring labor's share of an economy's aggregate income seems straightforward,at least in principle. Count up wage and salary income, along with the value of benefitsprovided to employees, and divide it by total income. However, one fundamentalconcept of labor's share in macroeconomic theory is...

We test the existence of changes in the relationship between fertility and schoolingin Colombia for women from 30 to 40 years old between 1995 and 2005. For ourpurpose, we use Poisson Regression Models. Our database is the Demographic andHealth Survey from 1995 and 2005. We found a reduction in...

This study examines the determinants of information and communications technology(ICT) use and access of low-income people in three developing countries: Colombia,Mexico and Peru. We focus on cross-country differences and similarities in ICTs use acrossgender, age, education and income, using...

We formulate and solve a model of factor saving technological improvement considering three factors of production: labor, capital and energy. The productive activities have three main characteristics: …first, in order to use capital goods fi…rms need energy; second, there are two sources of...