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作者：Wang, Guihua; Li, Jun; Hopp, Wallace J.
作者单位：University of Texas System; University of Texas Dallas; University of Michigan System; University of Michigan
摘要：This study addresses the ubiquitous challenge of using big observational data to identify heterogeneous treatment effects. This problem arises in precision medicine, targeted marketing, personalized education, and many other environments. Identifying heterogeneous treatment effects presents several analytical challenges including high dimensionality and endogeneity issues. We develop a new instrumental variable tree (IVT) approach that incorporates the instrumental variable method into a causa...
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作者：Budish, Eric; Kessler, Judd B.
作者单位：University of Chicago; University of Pennsylvania
摘要：In mechanism design theory it is common to assume that agents can perfectly report their preferences, even in complex settings in which this assumption strains reality. We experimentally test whether real market participants can report their real preferences for course schedules accurately enough for a novel course allocation mechanism, approximate competitive equilibrium from equal incomes (A-CEEI), to realize its theoretical benefits. To use market participants' real preferences (i.e., rathe...
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作者：Gu, Chris; Wang, Yike
作者单位：University System of Georgia; Georgia Institute of Technology; University of London; London School Economics & Political Science
摘要：Modern-day search platforms generally have two layers of information presentation. The outer layer displays the collection of search results with attributes selected by platforms, and consumers click on a product to reveal all its attributes in the inner layer. The information revealed in the outer layer affects the search costs and the probability of finding a match. To address the managerial question of optimal information layout, we create an information complexity measure of the outer laye...
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作者：Penasse, Julien
作者单位：University of Luxembourg
摘要：I study the importance of alpha decay for the measurement of realized and conditional expected returns in asset pricing studies. Alpha decay refers to the reduction in abnormal expected returns (relative to an asset pricing model) in response to an anomaly becoming widely known among market participants. As decreases in alpha are associated (ceteris paribus) with positive realized returns, the econometrician may misinterpret these repricing returns as evidence that the anomaly will persist in ...
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作者：Fabra, Natalia; Montero, Juan-Pablo
作者单位：Universidad Carlos III de Madrid; Centre for Economic Policy Research - UK; Pontificia Universidad Catolica de Chile
摘要：A well-known principle in economics is that firms differentiate their product offerings in order to relax competition. However, in this paper we show that information frictions can invalidate this principle. We build a duopolistic competition model of seconddegree price discrimination with information frictions in which (i) an equilibrium always exists with overlapping product qualities, whereas (ii) an equilibrium with nonoverlapping product qualities exists only if both information frictions...
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作者：Jindal, Pranav; Newberry, Peter
作者单位：University of North Carolina; University of North Carolina Chapel Hill; University System of Georgia; University of Georgia
摘要：We study how the presence of a monthly revenue-based quota impacts a retailer's profits when prices are negotiated by a salesperson. Using transaction level data for refrigerators, we first provide reduced-form evidence that prices are impacted by the quota: the negotiated discounts are approximately 3.8% higher if the salesperson is 10% closer to reaching the quota in the final week of the month. Guided by this result, we specify and estimate a demand model that identifies the impact of the q...
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作者：Yan, Zhenzhen; Natarajan, Karthik; Teo, Chung Piaw; Cheng, Cong
作者单位：Nanyang Technological University; Singapore University of Technology & Design; National University of Singapore; Hebei University of Technology
摘要：We develop a data-driven approach for the multiproduct pricing problem, using the theory of a representative consumer in discrete choice. We establish a set ofmathematical relationships between product prices and demand for each product in the system, including that of the outside option. We provide identification conditions to recover the underlying representative consumer model and show that, with sufficient pricing experiments, the approach can identify the underlying demand model (more pre...
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作者：Ekholm, Tommi; Baker, Erin
作者单位：Finnish Meteorological Institute; Aalto University; University of Massachusetts System; University of Massachusetts Amherst
摘要：This paper investigates multiperiod decisions under multiple beliefs. We explore the dynamic consistency of both complete and incomplete orderings. We focus on a dominance concept that supports decision-making under multiple characterizations of uncertainty by ruling out strategies that are dominated across a set of beliefs. We uncover a distinction between two types of dynamic inconsistency, which we label fallacious and fallible inconsistency. Fallacious inconsistency occurs when an a priori...
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作者：Li, Jun; Wu, Di (Andrew)
作者单位：University of Michigan System; University of Michigan
摘要：Policy makers in many developing countries use maximum price or markup policies to control pharmaceutical costs, which represent 20%-60% of their overall healthcare expenditure. We study the price effect of price ceiling policies by exploiting a major policy shift in China: the elimination of longstanding ceilings on retail drug prices. We collect weekly price and characteristics data on more than 4,500 drug stock keeping units (SKUs) from a leading pharmacy chain. By comparing the rate of dis...
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作者：Baruch, Shmuel; Zhang, Xiaodi
作者单位：University of Rome Tor Vergata; Shanghai University of Finance & Economics
摘要：In the capital asset pricing model (CAPM), it is ex post optimal to index. To examine the implications of market indexing, we develop a conditional CAPM with costless private information in which some investors are, for exogenous reasons, ex ante indexers. We show that, as more nonindexers become indexers, the price efficiency of stocks diminishes, asset prices comove, and the statistical fit (measured by R-2) of the CAPMregression decreases. We also report asset prices at the limit, when 100%...
