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作者：Garcia, Julian; van Veelen, Matthijs
作者单位：Monash University; Vrije Universiteit Amsterdam; University of Amsterdam
摘要：In the repeated prisoner's dilemma there is no strategy that is evolutionarily stable, and a profusion of neutrally stable ones. But how stable is neutrally stable? We show that in repeated games with large enough continuation probabilities, where the stage game is characterized by a conflict between individual and collective interests, there is always a neutral mutant that can drift into a population that is playing an equilibrium, and create a selective advantage for a second mutant. The exi...
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作者：Mattesini, Fabrizio; Nosal, Ed
作者单位：University of Rome Tor Vergata; Federal Reserve System - USA; Federal Reserve Bank - Chicago
摘要：We study how asset prices are affected by the amount of liquidity that is available in over-the-counter asset markets where dealers post prices and quantities at which they are willing to buy and sell assets. We find that higher levels of market liquidity lead to higher asset prices and lower bid ask spreads. Hence, an increase in inflation which lowers market liquidity increases asset returns and decreases asset prices. When agents' immediate consumption needs are stochastic, asset prices wil...
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作者：Aguiar, Mark; Amador, Manuel
作者单位：Princeton University; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
摘要：We study optimal fiscal policy in a small open economy (SOB) with sovereign and private default risk and limited commitment to tax plans. The SOE's government uses linear taxation to fund exogenous expenditures and uses public debt to inter-temporally allocate tax distortions. We characterize a class of environments in which the tax on labor goes to zero in the long run, while the tax on capital income may be non-zero, reversing the standard prediction of the Ramsey tax literature. The zero la...
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作者：Musatov, Daniil; Savvateev, Alexei; Weber, Shlomo
作者单位：New Economic School; Moscow Institute of Physics & Technology; Kazan Federal University
摘要：This paper examines Nash jurisdictional stability in a model with a continuum of agents whose characteristics are distributed over a unidimensional interval. Communal benefits and costs of each individual depend on her identity and the composition of the community which she belongs to. Since the framework is too general to yield an existence of Nash equilibrium, we introduce the essentiality of membership in one of the communities for all individuals. We highlight the Border Indifference Prope...
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作者：Li, Sanxi; Sun, Hailin; Wang, Tong; Yu, Jun
作者单位：Renmin University of China; People's Bank of China; University of Edinburgh; Shanghai University of Finance & Economics
摘要：This paper explores the sorting patterns in a two-sided matching market where agents facing different risks match to share them. When preference belongs to the class of harmonic absolute risk aversion (HARA), the risk premium is perfectly transferable within each partnership; thus a stable match minimizes the social cost of risk. In the systematic risk model, where agents are ranked by their holdings of a common risky asset, the convexity of the joint risk premium in joint risk size leads to n...
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作者：Gilboa, Itzhak; Postlewaite, Andrew; Samuelson, Larry
作者单位：Tel Aviv University; Hautes Etudes Commerciales (HEC) Paris; University of Pennsylvania; Yale University
摘要：People often consume non-durable goods in a way that seems inconsistent with preferences for smoothing consumption over time. We suggest that such patterns of consumption can be better explained if one takes into account the future utility flows generated by memorable consumption goods goods, such as a honeymoon or a vacation, whose utility flow outlives their physical consumption. We consider a model in which a consumer enjoys current consumption as well as utility generated by earlier memora...
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作者：Lee, Byung Soo
作者单位：University of Toronto
摘要：Brandenburger et al. (2008) defined the epistemic condition rationality and common assumption of rationality (RCAR) in lexicographic type structures. We define RCAR in the space of coherent lexicographic belief hierarchies and show that it is an epistemic condition for iterated admissibility. We also show that some coherent lexicographic belief hierarchies cannot be represented as types in lexicographic type structures. An advantage of this approach is that RCAR is possible in a canonical hier...
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作者：Chade, Hector; Kovrijnykh, Natalia
作者单位：Arizona State University; Arizona State University-Tempe
摘要：We analyze a principal agent problem with moral hazard where a principal searches for an opportunity of uncertain return, and hires an agent to evaluate available options. The agent's effort affects the informativeness of a signal about an option's return. Based on the information provided by the agent, the principal decides whether to exercise the option at hand. We derive properties of the optimal contract in both static and dynamic versions of the problem. We show that there are intermediat...
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作者：Olszewski, Wojciech; Wolinsky, Asher
作者单位：Northwestern University
摘要：This paper presents and analyzes a simple equilibrium search model. On one side, there is a population of searchers; on the other side, a population of objects. Searchers are strategic decision makers who are there to get matched to an object, while objects have no preferences or decisions to make. The main novelty is that an object is characterized by two attributes, but a searcher can observe only one at the point of decision. This generates some interesting phenomena such as multiplicity of...
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作者：Barlo, Mehmet; Carmona, Guilherme; Sabourian, Hamid
作者单位：Sabanci University; University of Surrey; University of Cambridge
摘要：We show that the Folk Theorem holds for n-player discounted repeated games with bounded memory (recall) strategies. Our main result demonstrates that any payoff profile that exceeds the pure minmax payoff profile can be approximately sustained by a pure strategy finite memory subgame perfect equilibrium of the repeated game if the players are sufficiently patient. We also show that the result can be extended to any payoff profile that exceeds the mixed minmax payoff profile if players can rand...
