We study a novel trade-off in market transparency regulation by estimating a structural
model of the German retail gasoline market. Transparent environments enable easy price …

This paper examines the amount of grandfathering needed for an emissions trading scheme
(ETS) to have a neutral impact on firm profits. We provide a simple formula to calculate profit …

Recent research highlights the importance of biased expectations and inattention for
nonlinear pricing in dynamic environments. Findings are:(1) Three-part tariffs, such as …

This paper shows that, when the price of emission allowances is sufficiently high, emission
trading schemes improve the emission efficiency of highly polluting firms. The efficiency gain …

Greenhouse gas regulation may seem like a distant threat, but corporations are already
maneuvering to make sure that the rules, when they come, will fall in their favor. Nearly 60 …

Consumers need to exert effort to use the incentives provided in a promotion campaign. This
effort is critical in the consumers' decision process and for the success of the campaign. We …

When consumers exhibit present bias, the standard solution to market failures caused by
externalities—Pigouvian pricing—is suboptimal. I investigate policies aimed at externalities …

We study the welfare effects of an increase in firms' information about consumer naivete in a
simple reduced-form model in which competitive firms can introduce distortionary fees that …

Competition among firms yields many benefits but can also encourage firms to engage in
corrupt or unethical activities. We argue that competition can lead organizations to provide …

Previous research shows that firms shroud high add-on prices in competitive markets with
naive consumers leading to inefficiency. We analyze the effects of regulatory intervention via …