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Many important economic questions hinge on the extent to which new goods either crowd out or complement consumption of existing products. Recent methods for studying new goods rule out complementarity by assumption, so their applicability to these questions has been limited. I develop a new model that relaxes this restriction, and use it to study(More)
One widely-reported prediction is that the availability of low-cost information on price, specifically the rise of comparison shopping agents, will lead all Internet retailers to charge the same price for mass-produced physical goods and that price will be approximately cost. This prediction is, however, in tension with another prediction – that firms(More)
P eer-to-peer (P2P) file sharing networks are an important medium for the distribution of information goods. However, there is little empirical research into the optimal design of these networks under real-world conditions. Early speculation about the behavior of P2P networks has focused on the role that positive network externalities play in improving(More)
We provide a uni…ed treatment of alternative models of information acquisition/transmission that have been advanced to rationalize price dispersion in online and o-ine markets for homogeneous products. These di¤erent frameworks— which include sequential search, …xed sample search, and clearinghouse models— reveal that reductions in (or the elimination of)(More)
Any opinions, findings, and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the National Science Foundation Abstract: A primary tool that consumers have for comparative shopping are shopbots, which is short for shopping robots. These shopbots automatically search a large number(More)
Adaptation is the only strategy that is guaranteed to be part of the world's climate strategy. Using the most comprehensive set of data files ever compiled on mortality and its determinants over the course of the 20 th century, this paper makes two primary discoveries. First, we find that the mortality effect of an extremely hot day declined by about 80%(More)
Consumers choosing fixed-rate contracts tend to have insufficient usage to warrant the cost, particularly for new products. We propose and estimate a Bayesian learning model of tariff and usage choice that explains this " flat-rate bias " without relying on behavioral misjudgments or tariff-specific preferences. Consumers face both idiosyncratic and(More)
Peer to peer networks will become an increasingly important distribution channel for consumer information goods and may play a role in the distribution of information within corporations. Our research analyzes optimal membership rules for these networks in light of positive and negative externalities additional users impose on the network. Using a dataset(More)