Publications of the Research Unit Market Design

  1. ZEW Discussion Paper // 2021

    Imperfect Information About Consumer Rights: Implications for Efficiency and Distribution

    This paper shows that the provision of consumer rights can decrease welfare when some consumers remain ignorant of these rights. We find that consumers uninformed about a mandated warranty demand excessively…

  2. ZEW Discussion Paper // 2021

    An Iterative Deferred Acceptance Mechanism for Decentralized, Fast and Fair Childcare Assignment

    We design and implement an iterative, program-proposing deferred acceptance mechanism with ties (IDAT) and apply it to childcare assignment in two German cities. The mechanism can accommodate…

  3. ZEW Discussion Paper // 2021

    Nonlinear Prices, Homogeneous Goods, Search

    We analyze competition on nonlinear prices in homogeneous goods markets with consumer search. In equilibrium firms offer two-part tariffs consisting of a linear price and lump-sum fee. The equilibrium production…

  4. ZEW Discussion Paper // 2021

    Information Acquisition and Diffusion in Markets

    Consumers can acquire information through their own search efforts or through their social network. Information diffusion via word-of-mouth communication leads to some consumers free-riding on their “friends”…

  5. ZEW Discussion Paper // 2021

    Truly Costly Search and Word-Of-Mouth Communication

    In markets with search frictions, consumers can acquire information about goods either through costly search or from friends via word-of-mouth (WOM) communication. How do sellers’ market power react to a very…

  6. ZEW Discussion Paper // 2021

    Uncertain Product Availability in Search Markets

    In many markets buyers are poorly informed about which firms sell the product (product availability) and prices, and therefore have to spend time to obtain this information. In contrast, sellers typically have a…