Related papers: Managers' Choice of Disclosure Complexity
The quantification of diversification benefits due to risk aggregation plays a prominent role in the (regulatory) capital management of large firms within the financial industry. However, the complexity of today's risk landscape makes a…
Responsible disclosure limitation is an iterative exercise in risk assessment and mitigation. From time to time, as disclosure risks grow and evolve and as data users' needs change, agencies must consider redesigning the disclosure…
Economic complexity measures aim to quantify the capability content or endowment of industries and territories; however, capabilities are not observable, and therefore cannot be directly used in the computations. We estimate such endowments…
Recently enacted regulations aimed to enhance retail investors' understanding about different types of investment accounts. Toward this goal, the Securities and Exchange Commission (SEC) mandated that SEC-registered investment advisors and…
Complexity theory is a useful tool to study computational issues surrounding the elicitation of preferences, as well as the strategic manipulation of elections aggregating together preferences of multiple agents. We study here the…
Recent studies highlight economic complexity's role in mitigating fiscal crises, often measured via an economy's trade structure. Trade, however, is just one facet of an economy's structure and omits critical innovative activities like…
Complexity of the problem of choosing among uncertain acts is a salient feature of many of the environments in which departures from expected utility theory are observed. I propose and axiomatize a model of choice under uncertainty in which…
Recent studies have found evidence of a negative association between economic complexity and inequality at the country level. Moreover, evidence suggests that sophisticated economies tend to outsource products that are less desirable (e.g.…
We study the implementability of stable matchings in a two-sided market model with one-sided incomplete information. Firms' types are publicly known, whereas workers' types are private information. A mechanism generates a matching and…
Which parts of a dataset will a given model find difficult? Recent work has shown that SGD-trained models have a bias towards simplicity, leading them to prioritize learning a majority class, or to rely upon harmful spurious correlations.…
This introductory paper is structured in the form of an "interview", where the author answers the following questions: Why did you begin working with complex systems? How would you define complexity? What is your favourite aspect/concept of…
Many applications from the financial industry successfully leverage clustering algorithms to reveal meaningful patterns among a vast amount of unstructured financial data. However, these algorithms suffer from a lack of interpretability…
Economic complexity has been linked to sustainability outcomes, such as income inequality and greenhouse gas emissions. Yet, it is unclear whether the pursuit of complex and/or related activities naturally aligns with these outcomes, or…
To make models more understandable and correctable, I propose that the PROMISE community pivots to the problem of model review. Over the years, there have been many reports that very simple models can perform exceptionally well. Yet, where…
We investigate a continuous-time investment-consumption problem with model uncertainty in a general diffusion-based market with random model coefficients. We assume that a power utility investor is ambiguity-averse, with the preference to…
A foundational approach is developed for a mathematical theory of managerial disclosure in relation to asset pricing; this involves both the earnings guidance disclosed by firm management and market `trackers' pricing the firm's exposure to…
A good process model is expected not only to reflect the behavior of the process, but also to be as easy to read and understand as possible. Because preferences vary across different applications, numerous measures provide ways to reflect…
In recent years economic complexity has grown into an active field of fundamental and applied research. Yet, despite important advances, the policy implications of economic complexity remain unclear or misunderstood. Here I organize the…
In a continuous-time setting we investigate how the management of a firm controls a dynamic choice between two generic voluntary disclosure decision rules: one with full and transparent disclosure termed $\it{candid}$, the other, termed…
Optimal shelflisting invites profit maximization to become sensitive to the ways in which purchasing decisions are order-dependent. We study the computational complexity of the corresponding product arrangement problem when consumers are…