We develop a theoretical framework to study illicit drugs markets, and we estimate it using data on drug purchases. Buyers are searching for high-quality drugs, but they can determine drugs’ quality (i.e., their purity) only after consuming them. Hence, sellers can rip-off first-time buyers, or can offer higher-quality drugs to induce buyers to purchase again from them. In equilibrium, a distri...

We estimate a model of illicit drugs markets using data on purchases of crack cocaine. Buyers are searching for high-quality drugs, but they determine drugs' quality (i.e., their purity) only after consuming them. Hence, sellers can rip off first-time buyers or can offer higher-quality drugs to induce buyers to purchase from them again. In equilibrium, a distribution of qualities persists. The ...

A manufacturer writes supply contracts with N buyers. Then, the buyers invest in product development and marketing, and the manufacturer builds capacity. Finally, demand is realized, and the ...rms renegotiate the supply contracts to achieve an e¢cient allocation of capacity among the buyers. The court remedy for breach of contract (speci...c performance versus expectation damages) a¤ects how t...

We consider marketplaces where buyers and sellers iteratively encounter to trade. Given some specific trade conditions, the question that we address is what strategies should buyers and sellers use to maximize gains. We focus on electronic markets where supply shortages are common. Under such market conditions sellers can only satisfy a subset of the purchase-orders they receive from buyers. Co...

This paper studies how the interplay of individual and social learning affects price dynamics. I consider a monopolist selling a new experience good over time to many buyers. Buyers learn from their own private experiences (individual learning) as well as by observing other buyers’ experiences (social learning). Individual learning generates ex post heterogeneity, which affects the buyers’ purc...

New home buyers in United States are becoming more discriminating in their home buying decision. They are demanding quality construction at reasonable prices. The current state of construction market also gives construction buyers more ammunition to be more discriminate when they choose to purchase homes.  To be competitive and remain in business, housing contractors and developers must meet th...

new home buyers in united states are becoming more discriminating in their home buying decision. they are demanding quality construction at reasonable prices. the current state of construction market also gives construction buyers more ammunition to be more discriminate when they choose to purchase homes.  to be competitive and remain in business, housing contractors and developers must meet th...