理论经济学
We study a dynamic generalization of stochastic rationality in consumer behavior, the Dynamic Random Utility Model (DRUM). Under DRUM, a consumer draws a utility function from a stochastic utility process and maximizes this utility subject…
We investigate whether fairness is compatible with efficiency in economies with multi-self agents, who may not be able to integrate their multiple objectives into a single complete and transitive ranking. We adapt envy-freeness,…
A modelling framework, based on the theory of signal processing, for characterising the dynamics of systems driven by the unravelling of information is outlined, and is applied to describe the process of decision making. The model input of…
Gambits are central to human decision-making. Our goal is to provide a theory of Gambits. A Gambit is a combination of psychological and technical factors designed to disrupt predictable play. Chess provides an environment to study gambits…
This note provides a critical discussion of the \textit{Critical Cost-Efficiency Index} (CCEI) as used to assess deviations from utility-maximizing behavior. I argue that the CCEI is hard to interpret, and that it can disagree with other…
In social choice theory, Sen's value restriction condition is a sufficiency condition restricted to individuals' ordinal preferences so as to obtain a transitive social preference under the majority decision rule. In this article, Sen's…
This paper presents four theorems that connect continuity postulates in mathematical economics to solvability axioms in mathematical psychology, and ranks them under alternative supplementary assumptions. Theorem 1 connects notions of…
A policymaker discloses public information to interacting agents who also acquire costly private information. More precise public information reduces the precision and cost of acquired private information. Considering this effect, what…
This paper presents a set of tests and an algorithm for agnostic, data-driven selection among macroeconomic DSGE models inspired by structure learning methods for DAGs. As the log-linear state-space solution to any DSGE model is also a DAG…
We present a deliberation model where a group of individuals with heterogeneous preferences iteratively forms expert committees whose members are tasked with the updating of an exogenously given status quo change proposal. Every individual…
We study a model of innovation with a large number of firms that create new technologies by combining several discrete ideas. These ideas are created via private investment and spread between firms. Firms face a choice between secrecy,…
In a many-to-one matchingmodel with responsive preferences in which indifferences are allowed, we study three notions of core, three notions of stability, and their relationships. We show that (i) the core contains the stable set, (ii) the…
If prices of assets traded in a financial market are determined by non-linear pricing rules, different versions of the Call-Put Parity have been considered. We show that, under monotonicity, parities between call and put options and…
In many first-price auctions, bidders face considerable strategic uncertainty: They cannot perfectly anticipate the other bidders' bidding behavior. We propose a model in which bidders do not know the entire distribution of opponent bids…
Consider $2k-1$ voters, each of which has a preference ranking between $n$ given alternatives. An alternative $A$ is called a Condorcet winner, if it wins against every other alternative $B$ in majority voting (meaning that for every other…
A fundamental assumption in classical mechanism design is that buyers are perfect optimizers. However, in practice, buyers may be limited by their computational capabilities or a lack of information, and may not be able to perfectly…
We present a novel characterization of random rank-dependent expected utility for finite datasets and finite prizes. The test lends itself to statistical testing using the tools in Kitamura and Stoye (2018).
This paper develops a new model of business cycles. The model is economical in that it is solved with an aggregate demand-aggregate supply diagram, and the effects of shocks and policies are obtained by comparative statics. The model builds…
In this discussion draft, we investigate five different models of duopoly games, where the market is assumed to have an isoelastic demand function. Moreover, quadratic cost functions reflecting decreasing returns to scale are considered.…
People rationalize their past choices, even those that were mistakes in hindsight. We propose a formal theory of this behavior. The theory predicts that sunk costs affect later choices. Its model primitives are identified by choice behavior…