How individuals allocate resources across social groups depends on economic conditions. While prior research has documented strong in-group favoritism in domains reflecting favorable economic conditions, it remains unclear how this tendency shifts in domains that reflect economic downturns. We...

To counter the threat of deindustrialization due to soaring energy prices and facilitate a green transition, policymakers have devised new subsidy schemes such as the "bridge electricity price" (BEP). To analyze this, we develop a model, where the principal introduces a subsidy program to...

Credence goods markets, such as those for car repairs and medical treatments, are generally characterized by an ex-ante and ex-post information asymmetry between the uninformed buyer and the informed seller. Previous literature demonstrates that efficiency and fraud in a monopolist credence...

In this paper we demonstrate that hiring a manager with a propensity to over-invest in socially and responsible production can increase firm profits if customers not only care about the responsible behavior of the market firm but also about the engagements of all players along the firm’s...

This paper considers price competition in a market where two firms sell a homogeneous service to a continuum of customers differing with respect to some exogenous characteristic. Our paper's novelty consists of explicitly acknowledging a distinctive property of many services in that firms incur...

This paper reports results of two controlled experiments on the behavioural effects of relative performance information (RPI) in different organizational structures. Our baseline study 1 focuses on a centralized organizational structure where employees are exogenously assigned to either a...