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Myopia and Anchoring

By George-Marios Angeletos and Zhen Huo

American Economic Review, April 2021

We develop an equivalence between the equilibrium effects of incomplete information and those of two behavioral distortions: myopia, or extra discounting of the future; and anchoring of current behavior to past behavior, as in models with habit persistenc...

Risk-Based Selection in Unemployment Insurance: Evidence and Implications

By Camille Landais, Arash Nekoei, Peter Nilsson, David Seim, and Johannes Spinnewijn

American Economic Review, April 2021

This paper studies whether adverse selection can rationalize a universal mandate for unemployment insurance (UI). Building on a unique feature of the unemployment policy in Sweden, where workers can opt for supplemental UI coverage above a minimum manda...

How Antitrust Enforcement Can Spur Innovation: Bell Labs and the 1956 Consent Decree

By Martin Watzinger, Thomas A. Fackler, Markus Nagler, and Monika Schnitzer

American Economic Journal: Economic Policy, November 2020

Is compulsory licensing an effective antitrust remedy to increase innovation? To answer this question, we analyze the 1956 consent decree that settled an antitrust lawsuit against Bell, a vertically integrated monopolist charged with foreclosing the telec...