This project investigates the implications of realistic properties of demand and supply curves that have not been previously studied due to a lack of empirical data. As larger and more detailed datasets are becoming available due to falling costs of information technology, it becomes crucial to understand the predictions of economic models that incorporate the shapes of demand and supply curves consistent with new empirical findings. Our research involves (1) a novel, flexible approach to analyzing economic equilibria involving generic demand curves and cost curves, (2), a generalization to a very general specification of taxes, which may involve technological or verification cost associated with tax collection, (3) an investigation of the social impact of price discrimination by firms.
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