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Collective Self-Control

By Alessandro Lizzeri and Leeat Yariv

American Economic Journal: Microeconomics, August 2017

Behavioral economics presents a "paternalistic" rationale for a benevolent government's intervention. We consider an economy where the only "distortion" is agents' time-inconsistency. We study the desirability of various forms of collective action, ones p...

A Theory of Indicative Bidding

By Daniel Quint and Kenneth Hendricks

American Economic Journal: Microeconomics, May 2018

When selling a business by auction, sellers typically use indicative bids—nonbinding preliminary bids—to select a small number of bidders to conduct due diligence and submit binding offers. We show that if entry into the auction is costly, ind...