This chapter surveys the literature on behavioral industrial organization, covering four broad
topics:(1) how rational firms interact with consumers who make systematic mistakes in …

Standard labor market models assume that workers hold accurate beliefs about the external
wage distribution, and hence their outside options with other employers. We test this …

This paper overviews three primary branches of the industrial organization literature with
behavioral consumers. The literature is organized according to whether consumers:(1) have …

Conventional economic theory assumes that consumers are fully rational, that they have
well-defined preferences and easily understand the market environment. Yet, in fact …

We estimate the effect of information and expertise on consumers' willingness to pay for
national brands in physically homogeneous product categories. In a detailed case study of …

This article examines a model in which advertisers bid for “sponsored-link” positions on a
search engine. The value advertisers derive from each position is endogenized as coming …

This paper evaluates, on the one hand, the influence that routes to persuasion has on the
webrooming and showrooming. On the other hand, for the specific case of products …

The platform design, the process that helps potential buyers on the internet navigate toward
products they may purchase, plays a critical role in reducing search frictions and …

Digital peer-to-peer marketplaces have increased the volume of trade in underutilized
assets. I use the setting of Airbnb to investigate transaction costs in these markets and the …

We examine the role of factor models and simple performance heuristics in investor decision-
making using Morningstar's 2002 rating methodology change. Before the change, flows …