Related papers: Inequality of Opportunity and Income Redistributio…
We study the effects of introducing information inefficiency in a model for a random linear economy with a representative consumer. This is done by considering statistical, instead of classical, economic general equilibria. Employing two…
A decision maker typically (i) incorporates training data to learn about the relative effectiveness of treatments, and (ii) chooses an implementation mechanism that implies an ``optimal'' predicted outcome distribution according to some…
The prevalence and importance of algorithmic two-sided marketplaces has drawn attention to the issue of fairness in such settings. Algorithmic decisions are used in assigning students to schools, users to advertisers, and applicants to job…
This paper examines a government's strategic resource allocation choices when facing an opposing group whose military power is uncertain. We investigate how this uncertainty affects the government's decision to divide resources in a way…
We estimate the dynamic distributional effects of financial shocks in the Euro Area using survey-based microdata on personal incomes. We find that positive financial shocks increase inequality, with heterogeneity across different income…
The Matthew effect describes the phenomenon where the rich tend to get richer. Such a success-driven mechanism has been studied in spatial public goods games in an inter-group way, where each individual's social power is enhanced across all…
Recent advancements in Large Language Models (LLMs) have made them a popular information-seeking tool among end users. However, the statistical training methods for LLMs have raised concerns about their representation of under-represented…
In the name of meritocracy, modern economies devote increasing amounts of resources to quantifying and ranking the performance of individuals and organisations. Rankings send out powerful signals, which lead to identify the actions of top…
An individually costly act that benefits all group members is a public good. Natural selection favors individual contribution to public goods only when some benefit to the individual offsets the cost of contribution. Problems of sex ratio,…
Algorithmic decision-making systems are increasingly used throughout the public and private sectors to make important decisions or assist humans in making these decisions with real social consequences. While there has been substantial…
Most existing notions of algorithmic fairness are one-shot: they ensure some form of allocative equality at the time of decision making, but do not account for the adverse impact of the algorithmic decisions today on the long-term welfare…
In dynamic settings each economic agent's choices can be revealing of her private information. This elicitation via the rationalization of observable behavior depends each agent's perception of which payoff-relevant contingencies other…
The empirical literature on the relationship between income inequality and economic growth has produced highly heterogeneous and often conflicting results. This paper investigates the sources of this heterogeneity using a meta-analytic…
How to distribute welfare in a society is a key issue in the subject of distributional justice, which is deeply involved with notions of fairness. Following a thought experiment by Dworkin, this work considers a society of individuals with…
Imitation is a key component of human social behavior, and is widely used by both children and adults as a way to navigate uncertain or unfamiliar situations. But in an environment populated by multiple heterogeneous agents pursuing…
An important but understudied question in economics is how people choose when facing uncertainty in the timing of events. Here we study preferences over time lotteries, in which the payment amount is certain but the payment time is…
Probability distributions of money, income, and energy consumption per capita are studied for ensembles of economic agents. The principle of entropy maximization for partitioning of a limited resource gives exponential distributions for the…
We study economies where consumers interact independently with many monopolists. When consumer valuations over goods are correlated, correlation can distort the induced distribution of consumer surplus (information rents). We identify which…
This paper studies a decentralized many-to-one matching market where preferences remain uncertain during the matching process. Institutions initiate matching by sending offers, and applicants decide whether to accept upon receiving them.…
Connections appear to be helpful in many contexts, such as obtaining a job, a promotion, a grant, a loan, or publishing a paper. This may be due either to favoritism or to information conveyed by connections. Attempts at identifying both…