理论经济学
In a commodity market, revenue adequate prices refer to compensations that ensure that a market participant has a non-negative profit. In this article, we study the problem of deriving revenue adequate prices for an electricity…
A decision maker's utility depends on her action $a\in A \subset \mathbb{R}^d$ and the payoff relevant state of the world $\theta\in \Theta$. One can define the value of acquiring new information as the difference between the maximum…
The European Union Emission Trading Scheme (EU ETS) is a cornerstone of the EU's strategy to fight climate change and an important device for plummeting greenhouse gas (GHG) emissions in an economically efficient manner. The power industry…
One of the consequences of persistent technological change is that it force individuals to make decisions under extreme uncertainty. This means that traditional decision-making frameworks cannot be applied. To address this issue we…
We modify the standard model of price competition with horizontally differentiated products, imperfect information, and search frictions by allowing consumers to flexibly acquire information about a product's match value during their…
Functional decision theory (FDT) is a fairly new mode of decision theory and a normative viewpoint on how an agent should maximize expected utility. The current standard in decision theory and computer science is causal decision theory…
An agent has access to multiple information sources, each of which provides information about a different attribute of an unknown state. Information is acquired continuously -- where the agent chooses both which sources to sample from, and…
We analyze the relation between strategy-proofness and preference reversal in the case that agents may declare indifference. Interestingly, Berga and Moreno (2020), have recently derived preference reversal from group strategy-proofness of…
The paper develops a general methodology for analyzing policies with path-dependency (hysteresis) in stochastic models with forward looking optimizing agents. Our main application is a macro-climate model with a path-dependent climate…
This paper considers the problem of randomly assigning a set of objects to a set of agents based on the ordinal preferences of agents. We generalize the well-known immediate acceptance algorithm to the afore-mentioned random environments…
This paper approaches the problem of understanding collective agency from a logical and game-theoretical perspective. Instead of collective intentionality, our analysis highlights the role of Pareto optimality. To facilitate the analysis,…
Consumers only discover at the first seller which product best fits their needs, then check its price online, then decide on buying. Switching sellers is costly. Equilibrium prices fall in the switching cost, eventually to the monopoly…
A vast majority of the school choice literature focuses on designing mechanisms to simultaneously assign students to many schools, and employs a "make it up as you go along" approach when it comes to each school's admissions policy. An…
We introduce a set-valued solution concept, M equilibrium, to capture empirical regularities from over half a century of game-theory experiments. We show M equilibrium serves as a meta theory for various models that hitherto were considered…
I study how strategic communication among voters shapes both political outcomes and parties' advertising strategies in a model of informative campaign advertising. Two main results are derived. First, echo chambers arise endogenously.…
Player-Compatible Equilibrium (PCE) imposes cross-player restrictions on the magnitudes of the players' "trembles" onto different strategies. These restrictions capture the idea that trembles correspond to deliberate experiments by agents…
Working becomes harder as we grow tired or bored. I model individuals who underestimate these changes in marginal disutility -- as implied by "projection bias" -- when deciding whether or not to continue working. This bias causes people's…
In a 1983 paper, Yannelis-Prabhakar rely on Michael's selection theorem to guarantee a continuous selection in the context of the existence of maximal elements and equilibria in abstract economies. In this tribute to Nicholas Yannelis, we…
I examine global dynamics in a monetary model with overlapping generations of finite-horizon agents and a binding lower bound on nominal interest rates. Debt targeting rules exacerbate the possibility of self-fulfilling liquidity traps, for…
We study a cheap-talk game where two experts first choose what information to acquire and then offer advice to a decision-maker whose actions affect the welfare of all. The experts cannot commit to reporting strategies. Yet, we show that…