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作者：Shneyerov, Artyom; Wong, Adam Chi Leung
作者单位：Universite de Montreal; Concordia University - Canada; Concordia University - Canada; Shanghai University of Finance & Economics
摘要：We study the steady state of a market with incoming cohorts of buyers and sellers who are matched pairwise and bargain under private information. A friction parameter is tau, the length of the time period until the next meeting. We provide a necessary and sufficient condition for the convergence of mechanism outcomes to perfect competition at the linear rate in tau, which is shown to be the fastest possible among all bargaining mechanisms. The condition requires that buyers and sellers always ...
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作者：Hu, Audrey; Matthews, Steven A.; Zou, Liang
作者单位：University of Pennsylvania; Tinbergen Institute; University of Amsterdam; University of Amsterdam
摘要：We analyze the effects of buyer and seller risk aversion in first- and second-price auctions in the classic setting of symmetric and independent private values. We show that the seller's optimal reserve price decreases in his own risk aversion, and more so in the first-price auction. The reserve price also decreases in the buyers' risk aversion in the first-price auction. Thus, greater risk aversion increases ex post efficiency in both auctions - especially that of the first-price auction. At ...
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作者：Ehlers, Lars; Erdil, Aytek
作者单位：University of Oxford; Universite de Montreal
摘要：A widespread practice in assignment of heterogeneous indivisible objects is to prioritize some recipients over others depending on the type of the object. Leading examples include assignment of public school seats, and allocation of houses, courses, or offices. Each object comes with a coarse priority ranking over recipients. Respecting such priorities constrains the set of feasible assignments, and therefore might lead to inefficiency, highlighting a tension between respecting priorities and ...
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作者：Grochulski, Borys; Piskorski, Tomasz
作者单位：Columbia University; Federal Reserve System - USA; Federal Reserve Bank - Richmond
摘要：We study the structure of optimal wedges and capital taxes in a dynamic Mirrlees economy with endogenous distribution of skills. Human capital is a private, stochastic state variable that drives the skill process of each individual. Building on the findings of the labor literature, we construct a tractable life-cycle model of human capital evolution with risky investment and stochastic depreciation. In this setting, we demonstrate the optimality of (a) a human capital premium, i.e., an excess ...
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作者：Barbos, Andrei
作者单位：State University System of Florida; University of South Florida
摘要：This paper studies a model of reference-dependent choice from sets of options grouped into categories. The proposed model is consistent with experimental evidence documenting context effects in a variety of choice situations. In our model, the reference point for any given category is subjective, and corresponds to the least preferred element in the category under consideration. Every object in a category is evaluated relative to the corresponding reference point; this may distort the objectiv...
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作者：Cherchye, Laurens; De Rock, Bram; Vermeulen, Frederic
作者单位：KU Leuven; Tilburg University; Tilburg University; Universite Libre de Bruxelles
摘要：We provide a nonparametric 'revealed preference' characterization of rational household behavior in terms of the collective consumption model, while accounting for general individual preferences that can be non-convex. Our main result is the Collective Afriat Theorem, which parallels the well-known Afriat Theorem for the unitary model. First, it provides a characterization of collectively rational consumption behavior in terms of collective Afriat inequalities. Next, it implies the Collective ...
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作者：Dybvig, Philip H.; Liu, Hong
作者单位：Washington University (WUSTL)
摘要：Retirement flexibility and inability to borrow against future labor income can significantly affect optimal consumption and investment. With voluntary retirement, there exists an optimal wealth-to-wage ratio threshold for retirement and human capital correlates negatively with the stock market even when wages have zero or slightly positive market risk exposure. Consequently, investors optimally invest more in the stock market than without retirement flexibility. Both consumption and portfolio ...
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作者：Bagh, Adib
作者单位：University of Kentucky; University of Kentucky
摘要：We introduce a notion of variational convergence for sequences of games and we show that the Nash equilibrium map is upper semi-continuous with respect to variationally converging sequences. We then show that for a game G with discontinuous payoff, some of the most important existence results of Dasgupta and Maskin, Simon, and Reny are based on constructing approximating sequences of games that variationally converge to G. In fact, this notion of convergence will help simplify these results an...
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作者：Chiappori, Pierre-Andre
作者单位：Columbia University
摘要：Although the Transferable Utility (TU) assumption is widely used in micro theory, little is known about its testable consequences, and in particular how one can, from the observation of a group's demand, test whether the TU assumption is satisfied within this group. We derive a set of necessary and sufficient conditions on demand that characterize the TU context. The conditions are of two types. First, TU requires the group to behave as a single decision maker. Secondly, within the unitary set...
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作者：Molzon, Robert; Puzzello, Daniela
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Kentucky
摘要：Random matching is often used in economic models as a means of introducing uncertainty in sequential decision problems. We show that random matching processes that satisfy standard proportionality laws are not unique. We give conditions on the payoffs and transition functions of sequential decision models that insure that economic models are robust to the nonuniqueness of the matching process. Under these conditions, the information contained in the proportionality laws is all that is needed t...
