Recent research highlights the importance of biased expectations and inattention for nonlinear pricing in dynamic environments. Findings are: (1) Three-part tariffs, such as cellular service contracts, exploit consumer overconfidence. (2) Surprise penalty fees may be used to further exploit biased beliefs or alternatively to price discriminate more efficiently whenever consumers are inattentive...

This paper provides novel evidence on lenders’ mortgage pricing and how central bank policies affected it. Using the universe of mortgages originated in U.K., we show that lenders seek to segment market by offering two-part tariffs composed interest rates origination fees, during recent periods unconventional monetary policy, such as U.K.’s Funding for Lending Scheme, decreased increased fees. ...

We show that the endogenous stochastic process of the liquidity of securities is as important to investment and valuation as the exogenous stochastic process of their cash ‡ows. We develop a general-equilibrium model with heterogeneous investors who have an every-day motive to trade and pay transactions fees. Our model delivers the optimal, market-clearing moves of each investor and the resulti...

OBJECTIVE To explore the future career preferences of Commonwealth-supported place (CSP) and full-fee paying (FFP) medical students in Australia. DESIGN, SETTING AND PARTICIPANTS Data from the Medical Schools Outcomes Database and Longitudinal Tracking (MSOD) Project exit questionnaire for CSP and FFP students who graduated between 2008 and 2011 were analysed using logistic regression. The in...

Recently the news broke out about the crippling strike by junior doctors in Medical College and Hospitals of Maharashtra. The young doctors were agitating against decision of the Goverment to open private Medical Colleges for which seats will be offered on consideration of money (capitation fees). System of capitation fees for medical colleges has been in existence in some other states for a lo...