Firms sometimes comply with externality-correcting policies by gaming the measure that
determines policy. This harms buyers by eroding information, but it benefits them when cost …

Firms sometimes comply with externality-correcting policies by gaming the measure that
determines policy. We show theoretically that such gaming can benefit consumers, even …

Notches---where small changes in behavior lead to large changes in a tax or subsidy---
figure prominently in many policies, but have been rarely examined by economists. In this …

Estimating the cost of regulation is difficult. Firms sometimes reveal costs indirectly, however,
when they exploit loopholes to avoid regulation. We apply this insight to fuel economy …

In a model of a competitive industry selling base goods and add-ons, we investigate the
conditions under which citizen-consumers will support policies that eliminate behavioral …

In the presence of naive consumers, a participation distortion arises in competitive markets
because the additional profits from naive consumers lead competitive firms to lower …

We provide empirical evidence that automobile manufacturers use cash incentives to offset
how gasoline price fluctuations affect the expected fuel expenses of automobile buyers …

We use a theoretical model and empirically'calibrated simulations of the automobile market
to show how the traditional logic of Pigouvian taxation changes when consumers are …

We investigate how cap-and-trade regulation affects profits. In late April 2006, the EU CO2
allowance price dropped 50 percent, equating to a€ 28 billion reduction in the value of …

Endogenous quality and bargaining are important features of many markets but are typically
omitted from studies of incidence. We develop a model with product upgrades and costly …