We study the effect of noise due to exogenous information distortions in the context of Bayesianpersuasion. In particular, we ask whether more noise (a la Blackwell) is always harmful forthe information designer, i.e., the sender. We show that in general this is not the case. Weprovide a...

We study customization in the Hotelling model with two firms. In addition to providing ideal varieties, the perceived uniqueness of a customized product contributes independently to consumer utility. We show that only when consumer preferences for uniqueness are high customization occurs in...

I present a theoretical framework that shows how self-control could have evolved as a mechanism to make humans behave against their own self-interest. I analyze the evolution of self-control in a principal-agent framework, in which the agent has access to private information, but his utility...

A market where short-lived customers interact with a long-lived expert is considered. An expert privately observes whether or not a particular treatment is necessary for his customers and has an incentive to recommend the treatment even if it is unnecessary. Customers imperfectly observe the...

Product information websites have become ubiquitous in supporting B2C E-Commerce. This paper explores their impact on firm profitability, consumer surplus, and social welfare. Using an analytical model, we show that firms take advantage of such infomediaries and reduce their own information...

We study how a durable-goods monopolist upgrades heterogeneous consumers in an infinite horizon model of quality growth. While unable to charge consumers based on their purchase histories, the monopolist may engage in both inter- and intra-temporal price discriminations: charge different prices...

This paper analyzes grading competition between instructors of elective courses when students shop for high course scores, the instructors maximize class size, and the school imposes a ceiling on mean course scores to limit grade inflation. Under this grading norm, we demonstrate that curriculum...

The popular Internet marketplace, eBay, introduced the Best Offer format in 2005. This paper studies buyer's behavior under such a mechanism. We characterize this mechanism as a sequential-move game between the seller of an item and its buyers. Our model suggests that a rational buyer's offer...