理论经济学
In the early $20^{th}$ century, Pigou observed that imposing a marginal cost tax on the usage of a public good induces a socially efficient level of use as an equilibrium. Unfortunately, such a "Pigouvian" tax may also induce other,…
Sanctioned by its constitution, India is home to the world's most comprehensive affirmative action program, where historically discriminated groups are protected with vertical reservations implemented as "set asides," and other…
We build an endogenous growth model with consumer-generated data as a new key factor for knowledge accumulation. Consumers balance between providing data for profit and potential privacy infringement. Intermediate good producers use data to…
We model a dynamic data economy with fully endogenous growth where agents generate data from consumption and share them with innovation and production firms. Different from other productive factors such as labor or capital, data are…
There are different interpretations of the terms "tokens" and "token-based systems" in the literature around blockchain and digital currencies although the distinction between token-based and account-based systems is well entrenched in…
I introduce novel preference formulations which capture aversion to ambiguity about unknown and potentially time-varying volatility. I compare these preferences with Gilboa and Schmeidler's maxmin expected utility as well as variational…
This paper shows the usefulness of Perov's contraction principle, which generalizes Banach's contraction principle to a vector-valued metric, for studying dynamic programming problems in which the discount factor can be stochastic. The…
Many online shops offer functionality that help their customers navigate the available alternatives. For instance, options to filter and to sort goods are wide-spread. In this paper we show that sorting and filtering can be used by rational…
The Expected Shortfall (ES) is one of the most important regulatory risk measures in finance, insurance, and statistics, which has recently been characterized via sets of axioms from perspectives of portfolio risk management and statistics.…
Cheng(2021) proposes and characterizes Relative Maximum Likelihood (RML) updating rule when the ambiguous beliefs are represented by a set of priors. Relatedly, this note proposes and characterizes Extended RML updating rule when the…
We introduce balancedness a fairness axiom in house allocation problems. It requires a mechanism to assign the top choice, the second top choice, and so on, on the same number of profiles for each agent. This axiom guarantees equal…
We consider the allocation of indivisible objects when agents have preferences over their own allocations, but share the ownership of the resources to be distributed. Examples might include seats in public schools, faculty offices, and time…
This chapter examines how positivity and order play out in two important questions in mathematical economics, and in so doing, subjects the postulates of continuity, additivity and monotonicity to closer scrutiny. Two sets of results are…
We introduce a solution concept for extensive-form games of incomplete information in which players need not assign likelihoods to what they do not know about the game. This is embedded in a model in which players can hold multiple priors.…
This paper investigates stochastic continuous time contests with a twist: the designer requires that contest participants incur some cost to submit their entries. When the designer wishes to maximize the (expected) performance of the top…
We study binary coordination games with random utility played in networks. A typical equilibrium is fuzzy -- it has positive fractions of agents playing each action. The set of average behaviors that may arise in an equilibrium typically…
This paper studies the design of mechanisms that are robust to misspecification. We introduce a novel notion of robustness that connects a variety of disparate approaches and study its implications in a wide class of mechanism design…
In discrete matching markets, substitutes and complements can be unidirectional between two groups of workers when members of one group are more important or competent than those of the other group for firms. We show that a stable matching…
Goods and services -- public housing, medical appointments, schools -- are often allocated to individuals who rank them similarly but differ in their preference intensities. We characterize optimal allocation rules when individual…
Aggregating risks from multiple sources can be complex and demanding, and decision makers usually adopt heuristics to simplify the evaluation process. This paper axiomatizes two closed related and yet different heuristics, narrow bracketing…