This article shows that insulating market outcomes from consumers' misperceptions about product risk by compensating them fully for harm is not necessarily socially optimal. When firms offer products with…
The authors study optimal auctions in a symmetric private values setting, where bidders’ care about winning the object and a receiver’s inference about their type. They reestablish revenue equivalence when…
This paper examines the publication of quality indicators in service markets with public finance systems, such as education and healthcare markets. We provide a spatial model of product differentiation in which…
Problem Definition: We consider a buyer that needs to source a fixed quantity. She faces several potential suppliers that might fail to deliver. The buyer conducts a procurement auction to determine contract…
This paper analyzes a market in which two horizontally differentiated firms compete by setting menus of two-part tariffs, and in which some consumers are not informed about the linear per-unit price component.…
We describe a new mechanism - what we call a booster draft - for allocating multiple, indivisible objects among a group of individuals. The mechanism’s appeal lies in its strategy-proofness and simplicity:…
We analyze a monopolist who offers different variants of a possibly dangerous product to heterogeneous customers. Product variants are distinguished by different safety attributes. Customers choose product usage…