-cost production that creates negative externalities is significantly more prevalent in markets in China. Across both studies …

coordination problem. In the efficient allocation, both networks are active and the firm with the highest expected quality has the … largest market share. To characterize the equilibrium allocation, we derive necessary and sufficient conditions for uniqueness … of the equilibrium of the coordination game played by consumers for given prices. The equilibrium allocation differs from …

externalities. We conduct laboratory and online market experiments in which firms and consumers can exchange products that differ in …, increases in total consumption resulting from higher income can increase negative externalities. …

A recent debate raises the question whether market interaction erodes social responsibility. In an experiment, we … negative externalities from trade by reducing donations to a charity that provides meals to needy children. Our results show … steadfastly, i.e., they avoid trading a good that comes with negative externalities, even if gains from trade are high. …

-cost production that creates negative externalities is significantly more prevalent in markets in China. Across both studies …