Exit, Tweets, and Loyalty

By Joshua S. Gans, Avi Goldfarb, and Mara Lederman

American Economic Journal: Microeconomics, May 2021

Hirschman's Exit, Voice, and Loyalty highlights the role of "voice" when individuals confront an unexpected deterioration in quality. Yet, voice has received little attention. To motivate our empirical analysis, we develop a simple model of voice...

Competition and Price Transparency in the Market for Lemons: Experimental Evidence

By Olivier Bochet and Simon Siegenthaler

American Economic Journal: Microeconomics, May 2021

In markets with asymmetric information, where equilibria are often inefficient, bargaining can help promote welfare. We design an experiment to examine the impact of competition and price transparency in such settings. Consistent with the theoretical pred...

Is No News (Perceived As) Bad News? An Experimental Investigation of Information Disclosure

By Ginger Zhe Jin, Michael Luca, and Daniel Martin

American Economic Journal: Microeconomics, May 2021

This paper uses laboratory experiments to directly test a central prediction of disclosure theory: that strategic forces can lead those who possess private information to voluntarily provide it. In a simple sender-receiver game, we find that senders discl...

Learning from Unrealized versus Realized Prices

By M. Kathleen Ngangoué and Georg Weizsäcker

American Economic Journal: Microeconomics, May 2021

Our experiments investigate the extent to which traders learn from the price, differentiating between situations where orders are submitted before versus after the price has realized. In simultaneous markets with bids that are conditional on the price, tr...

The Competitive Effects of Transmission Infrastructure in the Indian Electricity Market

By Nicholas Ryan

American Economic Journal: Microeconomics, May 2021

The integration of markets may improve efficiency by lowering costs or reducing local market power. India, seeking to reduce electricity shortages, set up a new power market, in which transmission constraints sharply limit trade between regions. During co...

Crisis Management in Canada: Analyzing Default Risk and Liquidity Demand during Financial Stress

By Jason Allen, Ali Hortaçsu, and Jakub Kastl

American Economic Journal: Microeconomics, May 2021

Using detailed information from the Canadian interbank payments system and liquidity-providing facilities, we find that despite sustained increases in market-rate spreads, the increase in banks' willingness to pay for liquidity during the 2008–2009 fina...

Prospects in the Academic Labor Market for Economists

By Ronald G. Ehrenberg

Journal of Economic Perspectives, Spring 2004

This paper discussed what the academic labor market for economists is likely to look like in the years ahead. After tracing out trends in PhD production of new economists, including the increasing share of new PhDs who are foreign residents, it presents n...

Well-Being, Poverty, and Labor Income Taxation: Theory and Application to Europe and the United States

By François Maniquet and Dirk Neumann

American Economic Journal: Microeconomics, May 2021

In a model where agents differ in wages and preferences over labor time–consumption bundles, we study labor income tax schemes that alleviate poverty. To avoid conflict with individual well-being, we require redistribution to take place between agents o...

Coordinating Public Good Provision by Mediated Communication

By Maija Halonen-Akatwijuka and In-Uck Park

American Economic Journal: Microeconomics, May 2021

We examine a setup where two agents allocate a fixed budget between public goods in two areas. The agents may be biased to one area, which is their private information. Without communication, the funds are allocated inefficiently, resulting in gaps and du...

Common-Value Public Goods and Informational Social Dilemmas

By Caleb A. Cox and Brock Stoddard

American Economic Journal: Microeconomics, May 2021

We experimentally examine private information and communication in a public goods environment with uncertain returns. We consider a common-value public goods game in which the return to contribution is either high or low. Before contributing, three player...

Fair Utilitarianism

By Marc Fleurbaey and Stéphane Zuber

American Economic Journal: Microeconomics, May 2021

Utilitarianism plays a central role in economics, but there is a gap between theory, where utilitarianism is dominant, and applications, where monetary criteria are often used. For applications, a key difficulty is to define how utilities should be measur...

Revealing Naïveté and Sophistication from Procrastination and Preproperation

By David J. Freeman

American Economic Journal: Microeconomics, May 2021

This paper proposes a novel way of distinguishing whether a person is naive or sophisticated about her own dynamic inconsistency using only her task-completion behavior. It shows that adding an unused extra opportunity to complete a task can lead a naïve...

Exponential Satisficing

By Christopher J. Tyson

American Economic Journal: Microeconomics, May 2021

We propose the exponential satisficing model of boundedly rational decision-making, a general-purpose tool designed for use in typical microeconomic applications. The model posits that the preferences perceived and acted upon by the agent are a stochastic...

Front Matter

American Economic Review, May 2021

Auction Research Evolving: Theorems and Market Designs

By Paul Milgrom

American Economic Review, May 2021

A Few Bad Apples? Racial Bias in Policing

By Felipe Goncalves and Steven Mello

American Economic Review, May 2021

We estimate the degree to which individual police officers practice racial discrimination. Using a bunching estimation design and data from the Florida Highway Patrol, we show that minorities are less likely to receive a discount on their speeding tickets...

How Research Affects Policy: Experimental Evidence from 2,150 Brazilian Municipalities

By Jonas Hjort, Diana Moreira, Gautam Rao, and Juan Francisco Santini

American Economic Review, May 2021

Can research findings change political leaders' beliefs and policies? We use experiments with 2,150 Brazilian municipalities to measure mayors' demand for and response to research information. In one experiment, we find that mayors are willing to pay to l...

Policy Watch: Trade Adjustment Assistance

By Katherine Baicker and Marit M. Rehavi

Journal of Economic Perspectives, Spring 2004

Five Facts about Beliefs and Portfolios

By Stefano Giglio, Matteo Maggiori, Johannes Stroebel, and Stephen Utkus

American Economic Review, May 2021

We study a newly designed survey administered to a large panel of wealthy retail investors. The survey elicits beliefs that are important for macroeconomics and finance, and matches respondents with administrative data on their portfolio composition, th...

Dynastic Human Capital, Inequality, and Intergenerational Mobility

By Adrian Adermon, Mikael Lindahl, and Mårten Palme

American Economic Review, May 2021

We estimate long-run intergenerational persistence in human capital using information on outcomes for the extended family: the dynasty. A dataset including the entire Swedish population, linking four generations, allows us to identify parents' siblings an...