Can Understanding Spatial Equilibria Enhance Benefit Transfers for Environmental Policy Evaluation?
In: Environmental and resource economics, Volume 69, Issue 3, p. 591-608
ISSN: 1573-1502
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In: Environmental and resource economics, Volume 69, Issue 3, p. 591-608
ISSN: 1573-1502
In: The B.E. journal of economic analysis & policy, Volume 10, Issue 1
ISSN: 1935-1682
Abstract
This paper investigates the large and unexpected increase in cigarette prices that followed the 1997 Master Settlement Agreement (MSA). We integrate key features of rational addiction theory into a discrete-choice model of the demand for a differentiated product. We find that following the MSA firms set prices on a more elastic region of their demand curves. Using these estimates, we predict prices that would be charged under a variety of industry structures and pricing rules. Under the assumptions of firms' perfect foresight and constant marginal costs, we fail to reject the hypothesis that firms collude on a dynamic pricing strategy.
In: International Economic Review, Volume 60, Issue 3, p. 1171-1208
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In: NBER Working Paper No. w22732
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Working paper
In: NBER Working Paper No. w21387
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In: NBER Working Paper No. w24970
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In: NBER Working Paper No. w16349
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In: American economic review, Volume 106, Issue 12, p. 3932-3961
ISSN: 1944-7981
Consumers' enrollment decisions in Medicare Part D can be explained by Abaluck and Gruber's (2011) model of utility maximization with psychological biases or by a neoclassical version of their model that precludes such biases. We evaluate these competing hypotheses by applying nonparametric tests of utility maximization and model validation tests to administrative data. We find that 79 percent of enrollment decisions from 2006 to 2010 satisfied basic axioms of consumer theory under the assumption of full information. The validation tests provide evidence against widespread psychological biases. In particular, we find that precluding psychological biases improves the structural model's out-of-sample predictions for consumer behavior. (JEL C52, D12, I13, I18, J14)
In: NBER Working Paper No. w31824
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In: NBER Working Paper No. w29622
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In: NBER Working Paper No. w25652
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Working paper
In: Review of agricultural economics: RAE, Volume 27, Issue 4, p. 558-573
ISSN: 1467-9353