We report an experiment designed to study bargaining behavior between one buyer and multiple sellers with complementarity, and how it is influenced by fairness concern and information transparency. We base our setup on a structured alternating-offer bargaining model in which a buyer procures complementary items from two heterogeneous sellers with e...
This study investigates how house purchase restriction (HPR) affects stock market participation among households in China. Using a staggered difference-in-differences (DID), we observe a decrease in household stock market participation following the adoption of the HPR policy in a city. HPR decreases stock market participation by 1.72 percentage po...
Peer reviewed: True / Acknowledgements: I am extremely grateful to Greg Connor, Donald Robertson, Mark Salmon, Oliver Linton, Jacopo Capra, Pedro Saffi, Marco Geraci, James Ng, Massoud Mussavian, and Reto Tuffli for helpful discussions about this work. I am also very grateful to Mika Vaihekoski, Guest Editor of this special issue, and two anonymous...
THANK is a tractable heterogeneous-agent New-Keynesian model that captures analytically core micro-heterogeneity channels of quantitative-HANK: cyclical inequality and risk; self-insurance, precautionary saving, and realistic intertemporal marginal propensities to consume. I use it to elucidate key transmission mechanisms and dynamic proper...
Individuals’ decisions to behave prosocially (or the contrary) can often be observed by other individuals, with no direct connection to them, but who may nevertheless be influenced by them (e.g. through social media). Does knowing that they may be viewed as role models by other, notably younger, people affect the way individuals behave? Does it mak...
Welfare analysis of policy interventions is ubiquitous in economic research. It plays an important role in merger analysis and antitrust litigation, design of tax and subsidies, and informs the current debate on a universal basic income. This paper provides a survey of existing empirical methods, based on cross-sectional microdata, for calculating...
Funder: Compass Lexecon / Supplier market power—such as the ability of branded goods suppliers to dictate terms to retailers—is an important feature of many markets. We show that supplier power can counteract the effects of downstream mergers on consumer prices where there are two-part contracts. This is because greater market power allows ...
In this paper we explore further how energy network regulation might better be adapted to the uncertainty challenges that are raised by net zero climate policy. We do this with specific reference to energy regulation in the UK. We discuss the drivers of change and the nature of the uncertainty that is faced by energy regulators. Next, we examine th...
We introduce a notion of money-metric social welfare for discrete choice, under unrestricted heterogeneity and income-effects. It is the maximized indirect utility under normalization of the outside option. It also equals the amount of income necessary to achieve a given level of utility, while certain choices are prohibited. We show that t...
Peer reviewed: True / Using a dynamic spatial panel model applied to 377 US Metropolitan Statistical Areas (MSAs), estimated over the period 2011-2021, significant differences are found between large MSAs regarding the relationship between labour productivity and economic mass, as measured by GDP. The methodology adopted illustrates the state of t...
