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An informed seller designs a dynamic mechanism to sell an experience good. The seller has partial information about the product match, which affects the buyer's private consumption experience. We characterize equilibrium mechanisms of this…
As large language models are increasingly responsible for online content, concerns arise about the impact of repeatedly processing their own outputs. Inspired by the "broken telephone" effect in chained human communication, this study…
Classical wisdom in machine learning holds that the generalization error can be decomposed into bias and variance, and these two terms exhibit a \emph{trade-off}. However, in this paper, we show that for an ensemble of deep learning based…
Market sentiment analysis on social media content requires knowledge of both financial markets and social media jargon, which makes it a challenging task for human raters. The resulting lack of high-quality labeled data stands in the way of…
We develop a stochastic equilibrium model for an electricity market with asymmetric renewable energy forecasts. In our setting, market participants optimize their profits using public information about a conditional expectation of energy…
We analyze the structure of the market for foundation models, i.e., large AI models such as those that power ChatGPT and that are adaptable to downstream uses, and we examine the implications for competition policy and regulation. We…
The impact of trades on asset prices is a crucial aspect of market dynamics for academics, regulators and practitioners alike. Recently, universal and highly nonlinear master curves were observed for price impacts aggregated on all…
We conduct a laboratory experiment using framing to assess the willingness to ``sell a lemon'', i.e., to undertake an action that benefits self but hurts the other (the ``buyer''). We seek to disentangle the role of other-regarding…
With the widespread adoption of large language models (LLMs), hallucinations, which are non-factual fabrications in model outputs, have become serious concerns. Reasoning capabilities have received attention as a self-verification process…
In financial markets, the order flow, defined as the process assuming value one for buy market orders and minus one for sell market orders, displays a very slowly decaying autocorrelation function. Since orders impact prices, reconciling…
Second-hand markets have expanded rapidly with the growth of online consumer-to-consumer (C2C) platforms. A key feature of C2C markets is that sellers are typically non-professionals and often face uncertainty about the quality of the goods…
Information scrambling refers to the rapid spreading of initially localized information over an entire system, via the generation of global entanglement. This effect is usually detected by measuring a temporal decay of the out-of-time order…
Generalized P\'olya urns with non-linear feedback are an established probabilistic model to describe the dynamics of growth processes with reinforcement, a generic example being competition of agents in evolving markets. It is well known…
Developing a system of indicators that reflects the degree to which the securities market fulfils its key functions, is essential to assess the level of its development. In the conditions of asymmetric information it can also provide…
We study the problem of online learning in competitive settings in the context of two-sided matching markets. In particular, one side of the market, the agents, must learn about their preferences over the other side, the firms, through…
Identifying the causes of a model's unfairness is an important yet relatively unexplored task. We look into this problem through the lens of training data - the major source of unfairness. We ask the following questions: How would the…
Diversity is essential for language-model applications ranging from creative generation to scientific discovery, yet modern LLMs often collapse into a narrow subset of plausible outputs. While prior work has developed benchmarks for…
Humans use introspection to evaluate their understanding through private internal states inaccessible to external observers. We investigate whether large language models possess similar privileged knowledge about answer correctness,…
We explore a model of duopolistic competition in which consumers learn about the fit of each competitor's product. In equilibrium, consumers comparison shop: they learn only about the relative values of the products. When information is…
The Lucas-Moll system is a mean-field game type model describing the growth of an economy by means of diffusion of knowledge. The individual agents in the economy advance their knowledge by learning from each other and via internal…