The welfare gain to consumers from the introduction of personal computers is estimated here. A simple model of consumer demand is formulated that uses a slightly modi…ed version of standard preferences. The modi…cation permits marginal utility, and hence total utility, to be …nite when the consumption of computers is zero. This implies that the good won’t be consumed at a high enough price. It ...

Airfares are determined by both intertemporal price discrimination and dynamic adjustment to stochastic demand. I estimate a model of dynamic airline pricing accounting for both forces with new flight-level data. With model estimates, I disentangle key interactions between the arrival pattern of consumer types and remaining capacity under stochastic demand. I show that the forces are complement...

Estimates from a structural model of consumer behavior and firm conduct are used to decompose the extent to which quantity discounts for paper towels are consistent with second degree price discrimination as opposed to cost differences across sizes. Counterfactual exercises assuming that firms offer only one package size or charge uniform prices across sizes indicate that competition in the mul...

Airfares are determined by both intertemporal price discrimination and dynamic adjustment to stochastic demand. I estimate a model of dynamic airline pricing accounting for both forces with new flight-level data. With model estimates, I disentangle key interactions between the arrival pattern of consumer types and remaining capacity under stochastic demand. I show that the forces are complement...

Cost cap tariffs are pay-per-use tariffs for which costs cannot exceed a predefined cost limit. They were recently introduced to telecommunications markets, but were previously also applied in the insurance industry as deductibles or in the rental industry as day rates. This paper develops and empirically validates a consumer surplus model that explains the optimal consumption pattern under cos...

The welfare gain to consumers from the introduction of personal computers is estimated. A simple model of consumer demand is formulated that uses a slightly modi…ed version of standard preferences. The modi…cation permits marginal utility, and hence total utility, to be …nite when the consumption of computers is zero. This implies that the good won’t be consumed at a high enough price. It also ...

B software vendors offering, via the cloud, software-as-a-service (SaaS) versions of traditionally on-premises application software, security risks associated with usage become more diversified. This can greatly increase the value associated with the software. In an environment where negative security externalities are present and users make complex consumption and patching decisions, we constr...

Using survey data and an equilibrium displacement model, we estimate the market and economic impacts of the American Forest and Paper Association’s Sustainable Forestry Initiative (SFI) on stumpage markets in the US South. We examine four timber product markets: softwood pulpwood, softwood sawtimber, hardwood pulpwood, and hardwood sawtimber. In each market we calculate changes in producer and ...