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We introduce a minimal agent-based model to qualitatively conceptualize the allocation of limited wealth among more abundant opportunities. We study the interplay of power, satisfaction and frustration in distribution, concentration, and…

Physics and Society · Physics 2015-10-05 Benoit Mahault , Avadh Saxena , Cristiano Nisoli

There are many economic contexts where the productivity and welfare performance of institutions and policies depend on who matches with whom. Examples include caseworkers and job seekers in job search assistance programs, medical doctors…

Econometrics · Economics 2025-07-21 Yagan Hazard , Toru Kitagawa

Empirical welfare analyses often impose stringent parametric assumptions on individuals' preferences and neglect unobserved preference heterogeneity. We develop a framework to conduct individual and social welfare analysis for discrete…

Theoretical Economics · Economics 2025-05-20 Bart Capéau , Liebrecht De Sadeleer , Sebastiaan Maes

We study consumption behaviour in systems with heterogeneous interacting agents. Two different models are introduced, respectively with long and short range interactions among agents. At any time step an agent decides whether or not to…

Statistical Mechanics · Physics 2008-12-02 Giulia Iori , Vassilis Koulovassilopoulos

Schelling's model is an influential model that reveals how individual perceptions and incentives can lead to residential segregation. Inspired by a recent stream of work, we study welfare guarantees and complexity in this model with respect…

Computer Science and Game Theory · Computer Science 2022-03-21 Martin Bullinger , Warut Suksompong , Alexandros A. Voudouris

Ordered probit and logit models have been frequently used to estimate the mean ranking of happiness outcomes (and other ordinal data) across groups. However, it has been recently highlighted that such ranking may not be identified in most…

Econometrics · Economics 2022-06-08 Le-Yu Chen , Ekaterina Oparina , Nattavudh Powdthavee , Sorawoot Srisuma

A mathematical model of measurement of the perception of well-being for groups with increasing incomes, but proportionally unequal is proposed. Assuming that welfare grows with own income and decreases with relative inequality (income of…

General Economics · Economics 2019-11-27 Fernando Córdova-Lepe

We study the problem of approximate social welfare maximization (without money) in one-sided matching problems when agents have unrestricted cardinal preferences over a finite set of items. Random priority is a very well-known…

Computer Science and Game Theory · Computer Science 2014-05-07 Aris Filos-Ratsikas , Søren Kristoffer Stiil Frederiksen , Jie Zhang

To choose between two discrete goods, a consumer pays attention to only those with prices below a threshold. From these, she chooses her most preferred good. We assume consumers in a population have the same preference but may have…

Theoretical Economics · Economics 2025-11-07 Kaushil Patel

We study the power of item-pricing as a tool for approximately optimizing social welfare in a combinatorial market. We consider markets with $m$ indivisible items and $n$ buyers. The goal is to set prices to the items so that, when agents…

Computer Science and Game Theory · Computer Science 2015-11-10 Michal Feldman , Nick Gravin , Brendan Lucier

Current methodologies in machine learning analyze the effects of various statistical parity notions of fairness primarily in light of their impacts on predictive accuracy and vendor utility loss. In this paper, we propose a new framework…

Machine Learning · Computer Science 2018-07-04 Lily Hu , Yiling Chen

Using a model based on generalised Lotka Volterra dynamics together with some recent results for the solution of generalised Langevin equations, we show that the equilibrium solution for the probability distribution of wealth has two…

Statistical Mechanics · Physics 2008-12-10 Peter Richmond , Sorin Solomon

We study a network formation game where agents receive benefits by forming connections to other agents but also incur both direct and indirect costs from the formed connections. Specifically, once the agents have purchased their…

Computer Science and Game Theory · Computer Science 2019-06-04 Yu Chen , Shahin Jabbari , Michael Kearns , Sanjeev Khanna , Jamie Morgenstern

In this paper, we study the problem of learning the skill distribution of a population of agents from observations of pairwise games in a tournament. These games are played among randomly drawn agents from the population. The agents in our…

Machine Learning · Statistics 2020-06-16 Ali Jadbabaie , Anuran Makur , Devavrat Shah

Although the integration of two-sided matching markets using stable mechanisms generates expected gains from integration, I show that there are worst-case scenarios in which these are negative. The losses from integration can be large…

Theoretical Economics · Economics 2018-11-27 Josué Ortega

In a two-stage model of choice a decision maker first shortlists a given menu and then applies her preferences. We show that a sizeable class of these models run into significant issues in terms of identification of preferences…

Theoretical Economics · Economics 2024-11-14 Mikhail Freer , Hassan Nosratabadi

We analyze the stability properties of equilibrium solutions and periodicity of orbits in a two-dimensional dynamical system whose orbits mimic the evolution of the price of an asset and the excess demand for that asset. The construction of…

Dynamical Systems · Mathematics 2009-09-29 Vladimir Belitsky , Antonio L. Pereira , Fernando P. de Almeida Prado

We present a stylized model with feedback loops for the evolution of a population's wealth over generations. Individuals have both talent and wealth: talent is a random variable distributed identically for everyone, but wealth is a random…

Computer Science and Game Theory · Computer Science 2022-09-16 Krishna Acharya , Eshwar Ram Arunachaleswaran , Sampath Kannan , Aaron Roth , Juba Ziani

Assignment markets involve matching with transfers, as in labor markets and housing markets. We consider a two-sided assignment market with agent types and stochastic structure similar to models used in empirical studies, and characterize…

Computer Science and Game Theory · Computer Science 2014-07-10 Yash Kanoria , Daniela Saban , Jay Sethuraman

We study a heterogeneous agent macroeconomic model with an infinite number of households and firms competing in a labor market. Each household earns income and engages in consumption at each time step while aiming to maximize a concave…

General Economics · Economics 2023-03-10 Ruitu Xu , Yifei Min , Tianhao Wang , Zhaoran Wang , Michael I. Jordan , Zhuoran Yang