Recent empirical work on the effects of minimum wages has called into question the conventional wisdom that minimum wages invariably reduce employment. The authors develop a model of monopsonistic competition with free entry to analyze the effects of minimum wages and their predictions fit the...

The fundamental contribution of the paper is to contest the view that reducing barriers to entry cannot retard market performance when firm rivalry is productive. In a model of employee entry, we demonstrate that a reduction in barriers to entry causes no fall in industry price when incumbents...

We analyze models of product differentiation with perfect price discrimination and free entry. Although perfect price discrimination ensures efficient output decisions given product characteristics, coordination failures may prevent efficiency in the choice of product characteristics. More...

Is it always wise to disclose good news? We find that the weakest senders with good news have the most incentive to boast about it if the receiver has any private information. Hence the act of disclosing good news can paradoxically make the sender look bad. Withholding good news is an...