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We study a continuous time economy where throughout time, insiders receive private signals regarding the risky assets' terminal payoff. We prove existence of a partial communication equilibrium where, at each private signal time, the public…

Pricing of Securities · Quantitative Finance 2024-03-21 Scott Robertson

We study markets where firms compete for consumer attention by subsidizing costly product inspection. These subsidies do not change product quality, but they alter the order in which consumers search by lowering inspection costs. We…

Theoretical Economics · Economics 2026-05-29 Salvador Candelas , Nicole Immorlica , Brendan Lucier

As a firm varies the price of a product, consumers exhibit reference effects, making purchase decisions based not only on the prevailing price but also the product's price history. We consider the problem of learning such behavioral…

Computer Science and Game Theory · Computer Science 2017-08-31 Abbas Kazerouni , Benjamin Van Roy

The matching literature often recommends market centralization under the assumption that agents know their own preferences and that their preferences are fixed. We find counterevidence to this assumption in a quasi-experiment. In Germany's…

General Economics · Economics 2022-06-07 Julien Grenet , YingHua He , Dorothea Kübler

We study the competition for partners in two-sided matching markets with heterogeneous agent preferences, with a focus on how the equilibrium outcomes depend on the connectivity in the market. We model random partially connected markets,…

Computer Science and Game Theory · Computer Science 2023-01-12 Yash Kanoria , Seungki Min , Pengyu Qian

A principal who values an object allocates it to one or more agents. Agents learn private information (signals) from an information designer about the allocation payoff to the principal. Monetary transfer is not available but the principal…

Theoretical Economics · Economics 2022-10-31 Yi-Chun Chen , Gaoji Hu , Xiangqian Yang

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…

Artificial Intelligence · Computer Science 2022-06-07 Chinmay Maheshwari , Eric Mazumdar , Shankar Sastry

Allocation of spectrum is an important policy issue and decisions taken have ramifications for future growth of wireless communications and achieving universal connectivity. In this paper, on a common footing we compare the social welfare…

Networking and Internet Architecture · Computer Science 2013-07-23 Vijay G. Subramanian , Mike Honig , Randy Berry

In this paper I investigate a Bayesian inverse problem in the specific setting of a price setting monopolist facing a randomly growing demand in multiple possibly interconnected markets. Investigating the Value of Information of a signal to…

Theoretical Economics · Economics 2021-11-02 Stefan Behringer

We consider a market in which both suppliers and consumers compete for a product via scalar-parameterized supply offers and demand bids. Scalar-parameterized offers/bids are appealing due to their modeling simplicity and desirable…

General Economics · Economics 2020-03-04 Mariola Ndrio , Khaled Alshehri , Subhonmesh Bose

Strategic behaviour is one of the main explanations for cost overruns. It can theoretically be supported by agency theory, in which strategic behaviour is the result of asymmetric information between the principal and agent. This paper…

General Finance · Quantitative Finance 2013-07-09 Chantal C. Cantarelli , Caspar G. Chorus , Scott W. Cunningham

We study the ramifications of increased commitment power for information provision in an oligopolistic market with search frictions. Although prices are posted and, therefore, guide search, if firms cannot commit to information provision…

Theoretical Economics · Economics 2024-02-20 Pak Hung Au , Mark Whitmeyer

We study misspecified Bayesian learning in principal-agent relationships, where an agent is assessed by an evaluator and rewarded by the market. The agent's outcome depends on their innate ability, costly effort -- whose effectiveness is…

Theoretical Economics · Economics 2025-12-02 Federico Echenique , Anqi Li

Motivated by online platforms such as job markets, we study an agent choosing from a list of candidates, each with a hidden quality that determines match value. The agent observes only a noisy ranking of the candidates plus a binary signal…

Computer Science and Game Theory · Computer Science 2026-02-26 Kate Donahue , Nicole Immorlica , Brendan Lucier

We consider a model where agents differ in their `types' which determines their voluntary contribution towards a public good. We analyze what the equilibrium composition of groups are under centralized and centralized choice. We show that…

Theoretical Economics · Economics 2020-08-10 Siddhartha Bandyopadhyay , Antonio Cabrales

We study the role of correlation in matching markets, where multiple decision-makers simultaneously face selection problems from the same pool of candidates. We propose a model in which a candidate's priority scores across different…

Computer Science and Game Theory · Computer Science 2025-12-08 Rémi Castera , Patrick Loiseau , Bary S. R. Pradelski

We propose a fair and efficient solution for assigning agents to m posts subject to congestion, when agents care about both their post and its congestion. Examples include assigning jobs to busy servers, students to crowded schools or…

Theoretical Economics · Economics 2024-02-23 Anna Bogomolnaia , Herve Moulin

Stable matching, a classical model for two-sided markets, has long been studied with little consideration for how each side's preferences are learned. With the advent of massive online markets powered by data-driven matching platforms, it…

Machine Learning · Computer Science 2020-07-14 Lydia T. Liu , Horia Mania , Michael I. Jordan

We study the classic principal-agent model when the signal observed by the principal is chosen by the agent. We fully characterize the optimal information structure from an agent's perspective in a general moral hazard setting with limited…

Theoretical Economics · Economics 2023-07-25 Majid Mahzoon , Ali Shourideh , Ariel Zetlin-Jones

Most online platforms strive to learn from interactions with users, and many engage in exploration: making potentially suboptimal choices for the sake of acquiring new information. We study the interplay between exploration and competition:…

Computer Science and Game Theory · Computer Science 2024-10-15 Guy Aridor , Yishay Mansour , Aleksandrs Slivkins , Zhiwei Steven Wu