Optimal policy during an epidemic calls for depressed economic activity to slow down the outbreak. Sometimes, these decisions are left local authorities (e.g. states). This creates externality, as outbreak does not respect states’ boundaries. The externality directly exacerbates Indirectly, it a free-rider problem, because policymakers pass cost of fighting on other states. A standard system di...

Channel selection is a critical trade-off for digital products firms whose are characterized by network externality. This work develops the models of consumers’ utility impacted externality two channel strategies product in two-sided market: direct strategy and platform strategy. Deriving from utility, optimization presented. The solved through Lagrangian method, comparative statics analysis co...

Motivated by Feder’s two-sector model concerning exports and growth, this article intends to propose a dynamic framework, which bases on the production function theory and consists of two versions of the two-sector (the financial sector and the real sector) model, for analyzing the interrelation between financial development and economic growth in terms of intersectoral externalities. The appro...

Managerial responses to online customer reviews not only affect customers who receive the responses but may also influence subsequent customers who observe the responses. This externality arises because of the public nature of online interactions. However, prior studies were mainly in offline settings where such externality rarely exists. In this study, we assess the magnitude of such externali...

OBJECTIVE To assess the relationship between locus of control and knowledge, attitude and practice regarding pill and condom use among university students. METHODS The inquiry was developed in Campinas, a city in Southeastern Brazil, in 2006. A total of 295 adolescent newcomers to a public university answered a structured questionnaire and Levenson's multidimensional locus of control scale. T...

Education will have externality effects in agriculture if, in the course of conducting their own private economic activities, educated farmers raise the productivity of uneducated farmers with whom they come into contact. This paper seeks to determine the potential size and source of such benefits for rural areas of Ethiopia. Average and stochastic frontier production function methodologies are...

It is well-known that pooled insurance coverage can induce people to make inefficiently low investments in self-protective activities. We identify another ex ante moral hazard that runs in the opposite direction. Lower levels of self-protection and the associated chronic conditions and behavioral patterns such as obesity, smoking, and malnutrition increase the incidence of many diseases and con...

We study the optimal pricing policy of a strategic monopolist selling durable goods in a dynamic pricing game with multiple rounds. Customers are forward-looking and experience a (positive) network externality, i.e., each customer’s utility depends not only on her valuation of the item and the offered price, but also the weighted sum of the number of other customers who have purchased the item....

Many western European housing policies have tried to increase the residential mix of advantaged and disadvantaged groups. Unfortunately, policymakers have given little consideration to how these groups will interact as neighbours. There are numerous theoretically grounded mechanisms by which the social mix of a neighbourhood may influence socio-economic outcomes of its residents. These mechanis...