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Punishing Financial Crimes: The Impact of Prison Sentences on Defendants and Their Colleagues

By Kristiina Huttunen, Martti Kaila, David C. Macdonald, and Emily Nix

American Economic Journal: Economic Policy

Financial crimes are costly to society but less severely punished than other nonviolent crimes. We investigate whether prison sentences reduce financial crimes. Using random assignment of judges in Finland to identify causal impacts, we find a prison se...

Fostering Cooperation: The Conflict-Reducing Effects of Inter-Village Competition for Government Transfers

By Teevrat Garg, Caterina Gennaioli, Stefania Lovo, and Gregor Singer

American Economic Journal: Applied Economics

We examine the effect of inter-group competition on within-group violent conflict in Indonesia. Using a triple-differences design, we find that higher competition for national government transfers between villages reduces within-village conflict. These ...

Heterogeneous Noise and Stable Miscoordination

By Srinivas Arigapudi, Yuval Heller, and Amnon Schreiber

American Economic Journal: Microeconomics, November 2025

Coordination games feature two types of equilibria: pure equilibria, where players successfully coordinate their actions, and mixed equilibria, where players frequently experience miscoordination. We investigate learning dynamics where agents observe the ...

Holding Platforms Liable

By Xinyu Hua and Kathryn E. Spier

American Economic Journal: Microeconomics, November 2025

Should platforms be liable for harms suffered by users? A platform enables interactions between firms and users. Harmful firms impose larger costs on users than safe firms. If firms have deep pockets and are fully liable for harms, platform liability is u...

Market Segmentation and Product Steering

By Stefan Terstiege and Adrien Vigier

American Economic Journal: Microeconomics, November 2025

A monopolistic seller possesses an inventory containing distinct products, each consumer wishes to buy a single product, and the seller can steer consumers' choices. We fully characterize the producer-consumer surplus pairs induced by market segmentation ...