activity
20172021
most citedGood signals gone bad: dynamic signalling with switching efforts

2 citations · 4 across the 8 of their papers we have counts for

collaborators

10 papers

econ.TH2021

Costlier switching strengthens competition even without advertising

Sander Heinsalu

Consumers only discover at the first seller which product best fits their needs, then check its price online, then decide on buying. Switching sellers is costly. Equilibrium prices…

q-bio.PE2020★ 1 cited

Infection arbitrage

Sander Heinsalu

Increasing the infection risk early in an epidemic is individually and socially optimal under some parameter values. The reason is that the early patients recover or die before the…

econ.TH2020

Greater search cost reduces prices

Sander Heinsalu

The optimal price of each firm falls in the search cost of consumers, in the limit to the monopoly price, despite the exit of lower-value consumers in response to costlier search.…

econ.TH2019

Reversals of signal-posterior monotonicity imply a bias of screening

Sander Heinsalu

This note strengthens the main result of Lagziel and Lehrer (2019) (LL) "A bias in screening" using Chambers Healy (2011) (CH) "Reversals of signal-posterior monotonicity for any b…

econ.TH2019

When abstinence increases prevalence

Sander Heinsalu

In the pool of people seeking partners, a uniformly greater preference for abstinence increases the prevalence of infection and worsens everyone's welfare. In contrast, prevention…

econ.TH2019★ 1 cited

Price competition with uncertain quality and cost

Sander Heinsalu

Consumers in many markets are uncertain about firms' qualities and costs, so buy based on both the price and the quality inferred from it. Optimal pricing depends on consumer heter…

econ.TH2019

Herding driven by the desire to differ

Sander Heinsalu

Observational learning often involves congestion: an agent gets lower payoff from an action when more predecessors have taken that action. This preference to act differently from p…

econ.TH2018

Corrigendum to "Managerial Incentive Problems: A Dynamic Perspective"

Sander Heinsalu

This paper corrects some mathematical errors in Holmström (1999) and clarifies the assumptions that are sufficient for the results of Holmström (1999). The results remain qualitati…

econ.GN2018

Competitive pricing despite search costs if lower price signals quality

Sander Heinsalu

I show that firms price almost competitively and consumers can infer product quality from prices in markets where firms differ in quality and production cost, and learning prices i…

econ.GN2017★ 2 cited

Good signals gone bad: dynamic signalling with switching efforts

Sander Heinsalu

This paper examines signalling when the sender exerts effort and receives benefits over time. Receivers only observe a noisy public signal about the effort, which has no intrinsic…