Central bank digital currencies (CBDCs), which are legal tenders in digital form, are expected to reduce currency issuance and circulation costs and broaden the scope of monetary policy. In addition, these currencies may also reduce consumers' need for conventional demand deposits, which, in...

We examine the optimal contract for experts with type-dependent reservation wage. We show that Bhattacharya and Pfleiderer (1985)’s result, the possibility of achieving the truthful revelation of information with full surplus extraction, can be achieved with relaxing the restriction on the...

This paper investigates both theoretically and empirically the influence of search and analysis costs of information on consumer's choice of cell phone plans. We assume that choosing optimal cell-phone plans requires consumers to go through a costly process of information search and analysis,...

We investigate the effects of a non-financial firm's entry on competition in the retail payments market, from the perspective of duopoly between an incumbent and an entrant in conditions of vertical restraints. Considering the cross-platform externalities in payment processing, differentiated...

Motivated by recently introduced retail payment schemes using information technology, often called “FinTech,” we examine the effects of fraud liability regime and information accessibility on the incentive for the anti-fraud investment in a vertically separated payment scheme. When the...