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Prime Locations

By Gabriel M. Ahlfeldt, Thilo N. H. Albers, and Kristian Behrens

American Economic Review: Insights

We develop a method for delineating prime locations—ultra-dense clusters of economic activity—within cities and apply it to comprehensive establishment data covering all US metropolitan areas. We further use big data to extend the analysis to a glo...

How Test Optional Policies in College Admissions Disproportionately Harm High Achieving Applicants from Disadvantaged Backgrounds

By Bruce Sacerdote, Douglas O. Staiger, and Michele Tine

American Economic Review: Insights

We analyze data from one elite institution and find that test score optional policies harm the likelihood of admission for high achieving applicants from disadvantaged backgrounds. Under test optional policies, these applicants submit test scores at to...

On Dynamic Pricing

By Ilia Krasikov and Rohit Lamba

American Economic Journal: Microeconomics, February 2026

This paper builds a theory of dynamic pricing for the sale of timed goods. The main friction is private and evolving valuation of the buyer prior to the date of consumption, which follows a Poisson process. A combination of membership fees and continuousl...

How to Allocate Money?

By Piotr Dworczak

American Economic Journal: Microeconomics, February 2026

I study a simple equity-efficiency problem: A designer allocates a fixed amount of money to a population of agents differing in privately observed marginal values for money. She can only screen by imposing an "ordeal"—that is, by allocating more money t...

The Limits of Limited Commitment

By Jacopo Bizzotto, Toomas Hinnosaar, and Adrien Vigier

American Economic Journal: Microeconomics, February 2026

We study limited strategic leadership. A collection of subsets covering the leader's action space determines her commitment opportunities. We characterize the outcomes resulting from all possible commitment structures of this kind. If the commitment struc...