Related papers: Posterior-Separable Costs and Menu Preferences
We consider the problem of Adverse Selection and optimal derivative design within a Principal-Agent framework. The principal's income is exposed to non-hedgeable risk factors arising, for instance, from weather or climate phenomena. She…
Environments with fixed adjustment costs such as transaction costs or \lq menu costs\rq$ $ are widespread within economic systems. The presence of fixed minimal adjustment costs produces adjustment stickiness so that agents must choose a…
We study hypothesis testing over a heterogeneous population of strategic agents with private information. Any single test applied uniformly across the population yields statistical error that is sub-optimal relative to the performance of an…
We ask if participants in a choice experiment with repeated presentation of the same menus and no feedback provision: (i) exhibit overall behaviour that is consistent with ordinal and expected utility theory under *weak* preferences; (ii)…
We model an informed agent with information about the future value of an asset trying to maximize profits when subjected to a transaction cost as well as a market maker tasked with setting fair transaction prices. In a single auction model,…
We revisit the discrete heterogeneous two-facility location problem, in which there is a set of agents that occupy nodes of a line graph, and have private approval preferences over two facilities. When the facilities are located at some…
A set of objects is to be divided fairly among agents with different tastes, modeled by additive utility-functions. If we consider the objects as indivisible, many instances of the decision problem: ``Is there a fair division of the objects…
We study utility indifference prices and optimal purchasing quantities for a non-traded contingent claim in an incomplete semi-martingale market with vanishing hedging errors. We make connections with the theory of large deviations. We…
Under the assumption of (positive) homogeneity (PH in the sequel) of the corresponding utility functions, we construct polynomial time algorithms for the weak separability, the collective consumption behavior and some related problems.…
We study the computational complexity of fairly allocating a set of indivisible items under externalities. In this recently-proposed setting, in addition to the utility the agent gets from their bundle, they also receive utility from items…
Inference in expressive probabilistic models is generally intractable, which makes them difficult to learn and limits their applicability. Sum-product networks are a class of deep models where, surprisingly, inference remains tractable even…
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…
When information acquisition is costly but flexible, a principal may rationally acquire information that favors one group over another. The former group faces incentives to invest in becoming productive, while the latter is discouraged from…
We study the problem of allocating a group of indivisible chores among agents while each chore has a binary marginal. We focus on the fairness criteria of envy-freeness up to any item (EFX) and investigate the existence of EFX allocations.…
In recent years, there has been increasing interest in explanation methods for neural model predictions that offer precise formal guarantees. These include abductive (respectively, contrastive) methods, which aim to compute minimal subsets…
Providing invariances in a given learning task conveys a key inductive bias that can lead to sample-efficient learning and good generalisation, if correctly specified. However, the ideal invariances for many problems of interest are often…
We study the fundamental problem of fairly allocating a multiset $\mathcal{M}$ of $t$ types of indivisible items among $d$ groups of agents, where all agents within a group have identical additive valuations. Gorantla et al. [GMV23] showed…
It is well known that the minimal superhedging price of a contingent claim is too high for practical use. In a continuous-time model uncertainty framework, we consider a relaxed hedging criterion based on acceptable shortfall risks.…
In school districts where assignments are exclusively determined by a clearinghouse students can only appeal their assignment with a valid reason. An assignment is incontestable if it is appeal-proof. We study incontestability when students…
We study the problem of allocating a set of indivisible chores to three agents, among whom two have additive cost functions, in a fair manner. Two fairness notions under consideration are envy-freeness up to any chore (EFX) and a relaxed…