Markets with endogenous uncertainty theory and policy

Do Þ nancial markets price monetary policy uncertainty ? ∗

1 Do Þnancial markets price monetary policy uncertainty? Abstract We study the impact of the uncertainty about the type of monetary policy on stock returns. We derive a model where we explicitly link fundamental uncertainty and uncertainty about the type of monetary policy and generate testable implications of their relative impacts on asset prices. We argue that investors' learning about the s...

On Product Uncertainty in Online Markets: Theory and Evidence

eBay Motors is the largest automotive site on the Internet with an annual revenue of more than $21 billion for 2009 and a sell-through rate of about 20 percent. eBay Motors lists over 100,000 cars for sale, and gets over 1 million visits from buyers each month. The listing fee for a car is $40, which allows the seller to list a car using software tools available from eBay Motors. Figure A1 show...

On Product Uncertainty in Online Markets : Theory and Evidence 1

Online markets pose a difficulty for evaluating products, particularly experience goods, such as used cars, that cannot be easily described online. This exacerbates product uncertainty, the buyer’s difficulty in evaluating product characteristics, and predicting how a product will perform in the future. However, the IS literature has focused on seller uncertainty and ignored product uncertainty...

Endogenous Timing with Demand Uncertainty

Discrete Games in Endogenous Networks: Theory and Policy

This paper develops a framework for analyzing individuals’ choices in the presence of endogenous social networks and implements it with data on teen smoking decisions and friendship networks. By allowing actions and friendships to be jointly chosen, the framework extends the literature on social interactions, which either models choices, taking the social network as given, or which models frien...