Discounting in Mortgage Markets

This paper studies discounting in mortgage markets. Using transaction-level data on Canadian mortgages, we document that over time there’s been an increase in the average discount, along with substantial dispersion. The standard explanation for dispersion in credit markets is that lenders engage in risk-based pricing. Our setting is unique since contracts are guaranteed by government-backed insurance, meaning risk cannot be the main driver of dispersion. We find that mortgage rates depend on individual, contractual, and shopping market characteristics. There is also an important amount of unobserved heterogeneity in rates, which could be attributed to search costs.Financial institutions; Financial services

The Effect of Explicit Communication on Pricing: Evidence From the Collapse of a Gasoline Cartel

We study the collapse of collusion in Québec\u27s retail gasoline market following a Competition Bureau investigation, and show that it involved two empirical regularities: high margins, and asymmetric price adjustments. Using weekly, station-level prices we test whether collusion was successful, and whether asymmetric adjustments were part of the cartel\u27s strategy. We do so in the markets targeted by the investigation, and in markets throughout the province with similar pre-collapse pricing (cyclical markets). Our results suggest that stations in both target and cyclical markets adjusted pricing following the announcement: margins fell (by 30%/15% in target/cyclical markets), and adjustments became more symmetric

Price Dispersion in Mortgage Markets

Using transaction-level data on Canadian mortgage contracts, we document an increase in the average discount negotiated off the posted price and in rate dispersion. Our aim is to identify the beneficiaries of discounting and to test whether dispersion is caused by price discrimination. The standard explanation for dispersion in credit markets is risk-based pricing. Our contracts are guaranteed by government-backed insurance, so risk cannot be the main factor. We find that lenders set prices that reflect consumer bargaining leverage, not just costs. The presence of dispersion implies a lack of competition, but our results show this to be consumer specific

Dark Optical Lattice of Ring Traps for Cold Atoms

We propose a new geometry of optical lattice for cold atoms, namely a lattice made of a 1D stack of dark ring traps. It is obtained through the interference pattern of a standard Gaussian beam with a counter-propagating hollow beam obtained using a setup with two conical lenses. The traps of the resulting lattice are characterized by a high confinement and a filling rate much larger than unity, even if loaded with cold atoms from a MOT. We have implemented this system experimentally, and obtained a lattice of ring traps populated with typically 40 atoms per site with a life time of 30 ms. Applications in statistical physics, quantum computing and Bose-Einstein condensate dynamics are conceivable.Comment: 4 pages, submitted to PR

Price Competition and Concentration in Search and Negotiation Markets: Evidence from Mortgage Lending

This paper examines the impact of bank consolidation on mortgage rates in order to evaluate the extent to which mortgage markets are competitive. Mortgage markets are decentralized and so rates are determined through a search and negotiation process. The primary effect of a merger therefore is to reduce the number of partners available with whom to negotiate, although it can also change the characteristics of the product, and impact the search effort of consumers. Using a Canadian merger as a case study, we find that, overall, consolidation had little effect on rates suggesting that, on average, the mortgage market is fairly competitive. However, a decomposition of the aggregate treatment effect reveals important heterogeneity in the impact of the merger. We find that consumers gathering multiple quotes are affected by the merger, while those who do not search are not. These results suggest that market power originates in large part from the presence of asymmetric search costs.Financial institutions; Financial services; Interest rates

Price Controls and Market Structure: Evidence From Gasoline Retail Markets

In this paper we study the effect of price floor regulations on the organization and performance of markets. The standard interpretation of the effects of these policies is concerned with short-run market distortions associated with excess supply. Since price controls prevent markets from clearing, they lead to higher prices. While this analysis may be correct in the short-run, it does not consider the dynamic equilibrium consequences of price controls. We demonstrate that price floor regulations can have important long-run effects on the the structure of markets by crowding them and creating endogenous barriers to entry for low-cost retailers. Moreover, we show that these factors can indirectly lower productivity and possibly even prices. We test this in the context of an actual regulation imposed in the retail gasoline market in the Canadian province of Québec and show that the policy led to more competition between smaller/less efficient stations. This resulted in lowered sales, and, despite the reduction in efficiency, did not increase prices

A Multi-level Investigation of Information Technology Outsourcing

This study proposes and tests a model of the information technology (IT) outsourcing decision that includes antecedents of both transaction costs and production costs. Production costs show the most robust influence on governance. Skills required to execute the activities, interdependence between the activities, and firm-level characteristics – uncertainty and knowledge intensity – are the main explanatory variables of the decision. Transaction-level uncertainty is the only transaction cost variable found to influence the decision

Picosecond Generation of Transient Charge Carriers in Langmuir-Blodgett Films of Semi-Amphiphilic Heterodimers

International audienceLangmuir-Blodgett homolayers are formed by deposition of semi-amphiphilic porphyrin-phthalocyanine heterodimers. The optical and photophysical properties of these dimers have been investigated and compared to the liquid-phase data. Excitation of the dimer results in an instantaneous formation of the singlet excited states, followed by a very efficient charge-transfer reaction. The oxidized porphyrin and reduced phthalocyanine moieties are formed within 2 ps and disappear in 70 ps. The triplet excited states of the porphyrin issued from the intersystem crossing decay pathway of the singlet excited states are formed with a very low quantum yield. They also undergo a charge-transfer reaction, leading to the formation of long-lived transient charge carriers. The photoprocesses determined in the Langmuir-Blodgett films of semi-amphiphilic porphyrin-phthalocyanine heterodimers are almost identical to those previously observed for the same dimers in the liquid phase

Wheat EST resources for functional genomics of abiotic stress

BACKGROUND: Wheat is an excellent species to study freezing tolerance and other abiotic stresses. However, the sequence of the wheat genome has not been completely characterized due to its complexity and large size. To circumvent this obstacle and identify genes involved in cold acclimation and associated stresses, a large scale EST sequencing approach was undertaken by the Functional Genomics of Abiotic Stress (FGAS) project. RESULTS: We generated 73,521 quality-filtered ESTs from eleven cDNA libraries constructed from wheat plants exposed to various abiotic stresses and at different developmental stages. In addition, 196,041 ESTs for which tracefiles were available from the National Science Foundation wheat EST sequencing program and DuPont were also quality-filtered and used in the analysis. Clustering of the combined ESTs with d2_cluster and TGICL yielded a few large clusters containing several thousand ESTs that were refractory to routine clustering techniques. To resolve this problem, the sequence proximity and "bridges" were identified by an e-value distance graph to manually break clusters into smaller groups. Assembly of the resolved ESTs generated a 75,488 unique sequence set (31,580 contigs and 43,908 singletons/singlets). Digital expression analyses indicated that the FGAS dataset is enriched in stress-regulated genes compared to the other public datasets. Over 43% of the unique sequence set was annotated and classified into functional categories according to Gene Ontology. CONCLUSION: We have annotated 29,556 different sequences, an almost 5-fold increase in annotated sequences compared to the available wheat public databases. Digital expression analysis combined with gene annotation helped in the identification of several pathways associated with abiotic stress. The genomic resources and knowledge developed by this project will contribute to a better understanding of the different mechanisms that govern stress tolerance in wheat and other cereals

Growth factors in multiple myeloma: a comprehensive analysis of their expression in tumor cells and bone marrow environment using Affymetrix microarrays

<p>Abstract</p> <p>Background</p> <p>Multiple myeloma (MM) is characterized by a strong dependence of the tumor cells on their microenvironment, which produces growth factors supporting survival and proliferation of myeloma cells (MMC). In the past few years, many myeloma growth factors (MGF) have been described in the literature. However, their relative importance and the nature of the cells producing MGF remain unidentified for many of them.</p> <p>Methods</p> <p>We have analysed the expression of 51 MGF and 36 MGF receptors (MGFR) using Affymetrix microarrays throughout normal plasma cell differentiation, in MMC and in cells from the bone marrow (BM) microenvironment (CD14, CD3, polymorphonuclear neutrophils, stromal cells and osteoclasts).</p> <p>Results</p> <p>4/51 MGF and 9/36 MGF-receptors genes were significantly overexpressed in plasmablasts (PPC) and BM plasma cell (BMPC) compared to B cells whereas 11 MGF and 11 MGFR genes were overexpressed in BMPC compared to PPC. 3 MGF genes (AREG, NRG3, Wnt5A) and none of the receptors were significantly overexpressed in MMC versus BMPC. Furthermore, 3/51 MGF genes were overexpressed in MMC compared to the the BM microenvironment whereas 22/51 MGF genes were overexpressed in one environment subpopulation compared to MMC.</p> <p>Conclusions</p> <p>Two major messages arise from this analysis 1) The majority of MGF genes is expressed by the bone marrow environment. 2) Several MGF and their receptors are overexpressed throughout normal plasma cell differentiation. This study provides an extensive and comparative analysis of MGF expression in plasma cell differentiation and in MM and gives new insights in the understanding of intercellular communication signals in MM.</p