Open Access. Powered by Scholars. Published by Universities.®
- Discipline
-
- Econometrics (30)
- Finance (10)
- Business (9)
- Behavioral Economics (7)
- Entrepreneurial and Small Business Operations (4)
-
- Growth and Development (4)
- Industrial Organization (4)
- International Economics (4)
- Public Affairs, Public Policy and Public Administration (4)
- Public Economics (4)
- Environmental Policy (3)
- Asian Studies (2)
- Education (2)
- Higher Education (2)
- International and Area Studies (2)
- Labor Economics (2)
- Macroeconomics (2)
- Organizational Behavior and Theory (2)
- Urban Studies and Planning (2)
- Agricultural and Resource Economics (1)
- Arts and Humanities (1)
- Finance and Financial Management (1)
- Income Distribution (1)
- Mathematics (1)
- Philosophy (1)
- Physical Sciences and Mathematics (1)
- Political Economy (1)
- Keyword
-
- Strategy-proofness (23)
- Incentive compatibility (13)
- Implementation (9)
- Robust mechanism design (8)
- Decomposability (7)
-
- Rationalizability (6)
- Restricted domains (6)
- Duality approach (5)
- Robustness (5)
- Sd-strategy-proofness (5)
- Bilateral trade (4)
- Budget balance (4)
- Complete information (4)
- Equal treatment of equals (4)
- Full implementation (4)
- Measurability (4)
- Mechanism design (4)
- Random social choice functions (4)
- Revealed preference (4)
- Sd-efficiency (4)
- Unanimity (4)
- Bundles (3)
- Competition (3)
- Compromise (3)
- Continuous implementation (3)
- Correlation (3)
- Ex post incentive compatibility (3)
- First-order belief (3)
- Fractional allocation (3)
- Global learning (3)
- Publication Year
- Publication
- Publication Type
Articles 91 - 120 of 207
Full-Text Articles in Economic Theory
Random Assignment Of Bundles, Shurojit Chatterji, Peng Liu
Random Assignment Of Bundles, Shurojit Chatterji, Peng Liu
Research Collection School Of Economics
We study the random assignments of bundles with no free disposal. The key difference between the setting with bundles and the setting with objects (see Bogomolnaia and Moulin (2001)) is one of feasibility. The implications of this difference are significant. First, the characterization of sd-efficient random assignments is fundamentally different. Second, a possibility result in the setting with objects fails in the setting with bundles. However, in the setting with bundles, we are able to identify a preference restriction, called essential monotonicity, under which the random serial dictatorship rule (extended to the setting with bundles) is equivalent to the probabilistic …
Sharing Sequential Values In A Network, Ruben Juarez, Yu Ko Chiu, Jingyi Xue
Sharing Sequential Values In A Network, Ruben Juarez, Yu Ko Chiu, Jingyi Xue
Research Collection School Of Economics
Consider a sequential process where agents have individual values at every possible step. A planner is in charge of selecting steps and distributing the accumulated aggregate values among a number of agents. We model this process by a directed network, whereby each edge is associated with a vector of individual values. This model applies to several new and existing problems, e.g. developing a connected public facility and distributing total values received by surrounding districts, selecting a long-term production project and sharing final profits among partners of a firm, or choosing a machine schedule to serve different tasks and distributing total …
Fair Division With Uncertain Needs, Jingyi Xue
Fair Division With Uncertain Needs, Jingyi Xue
Research Collection School Of Economics
Imagine agents having uncertain needs for a resource when the resource has to be divided before uncertainty resolves. In this situation, waste occurs when an agent's assignment turns out to exceed his realized need. How should the resource be divided in the face of possible waste? This is a question out of the scope of the existing rationing literature. Our main axiom to address the issue is no domination. It requires that no agent receive more of the resource than another while producing a larger expected waste, unless the other agent has been fully compensated. Together with conditional strict endowment …
Maskin Meets Abreu And Matsushima, Yi-Chun Chen, Takashi Kunimoto, Yifei Sun, Siyang Xiong
Maskin Meets Abreu And Matsushima, Yi-Chun Chen, Takashi Kunimoto, Yifei Sun, Siyang Xiong
Research Collection School Of Economics
We study the classical Nash implementation problem due to Maskin (1999), but allow for the use of lottery and monetary transfer as in Abreu and Matsushima (1992, 1994). We therefore unify two well-established but somewhat orthogonal approaches of implementation theory. We first show that Maskin monotonicity is a necessary and sufficient condition for pure-strategy Nash implementation by a direct mechanism. Second, taking mixed strategies into consideration, we show that Maskin monotonicity is a necessary and sufficient condition for mixed-strategy Nash implementation by a finite (albeit indirect) mechanism. Third, we extend our analysis to implementation in rationalizable strategies. In contrast to …
Global Economic Outlook: An Interview With The Global Chief Economist Of The Economist Intelligence Unit, Simon Baptist, Simon Baptist, Alvin Lee
Global Economic Outlook: An Interview With The Global Chief Economist Of The Economist Intelligence Unit, Simon Baptist, Simon Baptist, Alvin Lee
Asian Management Insights
Global Chief Economist of The Economist Intelligence Unit, Simon Baptist, discusses trends that are likely to shape the future global economic outlook, in this interview with Alvin Lee.
A Large Class Of Strategy-Proof Exchange Rules With Single-Peaked Preferences, Peng Liu
A Large Class Of Strategy-Proof Exchange Rules With Single-Peaked Preferences, Peng Liu
Research Collection School Of Economics
We study the classical house exchange problem (Shapley and Scarf (1974)) and identified a large class of rules, each of which is strategy-proof, efficient, and individually rational with single-peaked preferences. These rules are generalisations of Gale’s top trading cycles rule: In each step a subset of houses are allowed to be traded along top trading cycles and in particular, the next step subset of trading houses may depend on the exchanges happened already. We believe that the flexibility introduced by this class of rules is desirable when the designer faces some context-specific requirements.
On Random Social Choice Functions With The Tops-Only Property, Shurojit Chatterji, Huaxia Zeng
On Random Social Choice Functions With The Tops-Only Property, Shurojit Chatterji, Huaxia Zeng
Research Collection School Of Economics
We study the standard voting model with randomization. A Random Social Choice Function (or RSCF) satisfies the tops-only property if the social lottery under each preference profile depends only on the peaks of voters' preferences. We identify a general condition on domains of preferences (the Interior Property and the Exterior Property) which ensures that every strategy-proof RSCF satisfying unanimity has the tops-only property. We show that our condition applies to important classes of voting domains which include restricted connected domains (Sato, 2013) and the multi-dimensional single-peaked domain (Barberà et al., 1993). As an application of our result, we show that …
Industrial Output Fluctuations In Developing Countries: General Equilibrium Consequences Of Agricultural Productivity Shocks, Iona Hyojung Lee
Industrial Output Fluctuations In Developing Countries: General Equilibrium Consequences Of Agricultural Productivity Shocks, Iona Hyojung Lee
Research Collection School Of Economics
This paper shows that a negative shock to agricultural productivity may increase food prices, and labor and capital can move away from manufacturing into agriculture to meet the subsistence requirement for food. This effect depends on income levels and openness to trade. Using annual manufacturing data and rainfall shocks as the instrument for crop yields (proxy for agricultural productivity), I find that an exogenous decline in yield decreases manufacturing output as well as employment and capital investment in manufacturing. Overall, crop yield variation can explain up to 44% of industrial output fluctuations in developing countries (rainfall shocks cause 31% of …
On Random Social Choice Functions With The Tops-Only Property, Shurojit Chatterji, Huaxia Zeng
On Random Social Choice Functions With The Tops-Only Property, Shurojit Chatterji, Huaxia Zeng
Research Collection School Of Economics
We study the standard voting model with randomization. A Random Social Choice Function (or RSCF) satisfies the tops-only property if the social lottery under each preference profile depends only on the peaks of voters' preferences. We identify a general condition on domains of preferences (the Interior Property and the Exterior Property) which ensures that every strategy-proof RSCF satisfying unanimity has the tops-only property. We show that our condition applies to important classes of voting domains which include restricted connected domains (Sato, 2013) and the multi-dimensional single-peaked domain (Barberà et al., 1993). As an application of our result, we show that …
Limit Theory For Mildly Integrated Process With Intercept, Yijie Fei
Limit Theory For Mildly Integrated Process With Intercept, Yijie Fei
Research Collection School Of Economics
Some asymptotic results are given for first-order autoregressive (AR(1)) time series with two features: (i). a nonzero constant intercept (ii). a root moderately deviating from unity. Both stationary and explosive sides are studied. It is shown that the inclusion of intercept will change drastically the large sample properties of the least-squares (LS) estimator obtained in Phillips and Magdalinos (2007, PM hereafter). For near-stationary case, only an unusual convergence of a linear combination of intercept and AR coefficient can be derived. For near-explosive case, on the other hand, the limiting distributions of two estimators will be independent and Gaussian, with conventional …
Sequential Auctions With Decreasing Reserve Prices., Massimiliano Landi, Domenico Menicucci
Sequential Auctions With Decreasing Reserve Prices., Massimiliano Landi, Domenico Menicucci
Research Collection School Of Economics
We study sequential sealed bid auctions with decreasing reserve prices when there are two identical objects for sale and unit-demand bidders (existing literature has dealt with the case of weakly increasing reserve prices). Under decreasing reserve prices bidders may have an incentive not to bid in the first auction, and no equilibrium exists with a strictly increasing stage one bidding function. However, we find that an equilibrium always exists, and its shape depends on the distance between the two reserve prices. The equilibrium exhibits some pooling at the stage one auction, which disappears in the limit as the number of …
We’Re Less Likely To Collaborate In Bad Economic Times, Nina Sirola
We’Re Less Likely To Collaborate In Bad Economic Times, Nina Sirola
Research Collection Lee Kong Chian School Of Business
In the fall of 1930, the U.S. economy was on a path to recovery following a contraction that occurred the year before. However, worries about the state of the economy, and the banking system in particular, prompted an increasing number of bank customers to attempt to withdraw their funds, an event known as a bank run. Because banks normally keep only a small proportion of deposits in cash, bank runs create a self-fulfilling prophecy such that initial concerns about banks’ possible insolvency ultimately cause insolvency. The bank run of 1930 resulted in the worst economic downturn in the modern history, …
Random Mechanism Design On Multidimensional Domains, Shurojit Chatterji, Huaxia Zeng
Random Mechanism Design On Multidimensional Domains, Shurojit Chatterji, Huaxia Zeng
Research Collection School Of Economics
We study random mechanism design in an environment where the set of alternatives has a Cartesian product structure. We first show that all generalized random dictatorships are strategy-proof on a minimally rich domain if and only if the domain is a top-separable domain. We next generalize the notion of connectedness (Monjardet, 2009) to establish a particular class of top-separable domains: connected domains, and show that in the class of minimally rich and connected domains, the multidimensional single-peakedness restriction is necessary and sufficient for the design of a flexible random social choice function that is unanimous and strategy-proof. Such a flexible …
Fair Division With Uncertain Needs, Jingyi Xue
Fair Division With Uncertain Needs, Jingyi Xue
Research Collection School Of Economics
Imagine that agents have uncertain needs and a resource must be divided before uncertainty resolves. In this situation, waste typically occurs when the assignment to an agent turns out to exceed his realized need. How should the resource be divided in the face of possible waste? This is a question out of the scope of the existing rationing literature. Our main axiom to address the issue is no domination. It requires that no agent receive more of the resource than another while producing a larger expected waste, unless the other agent has been fully compensated. Together with conditional strict endowment …
Preferences With Changing Ambiguity Aversion, Jingyi Xue
Preferences With Changing Ambiguity Aversion, Jingyi Xue
Research Collection School Of Economics
This paper provides two equivalent representations for thegeneral class of uncertainty averse preferences studied by Cerreia-Vioglio,Maccheroni, Marinacci and Montrucchio (2011). The two representations employrespectively two important extensions of Gilboa and Schmeidler (1989)’s maxmindecision rule. The first is a weighted maxmin representation with anon-constant weight used in mixing the minimum and maximum expected utilities.The second is a variant constraint representation which evaluates a prospect bythe worst expected utility over a neighborhood of approximating priors wherethe size of the neighborhood depends on the prospect. The equivalent representationshave advantage in several respects. In the second part of this paper, we studythe wealth effect …
Favorite-Longshot Bias In Pari-Mutuel Betting: An Evolutionary Explanation, Atsushi Kajii, Takahiro Watanabe
Favorite-Longshot Bias In Pari-Mutuel Betting: An Evolutionary Explanation, Atsushi Kajii, Takahiro Watanabe
Research Collection School Of Economics
Favorite-longshot bias (FLB) refers to an observed tendency whereby “longshots” are overvalued and favorites are undervalued. We offer an evolutionary explanation for FLB in pari-mutuel betting using a simple market model. A bettor is forced to quit with some probability if his total net gain in one day is negative. Because of a positive track take, the expected returns of any strategy are negative, and so every agent must eventually lose and disappear in the long run. Those who favor longshots have a better chance of getting ahead with rare but large gains, enabling them to survive for longer than …
Every Random Choice Rule Is Backwards-Induction Rationalizable, Jiangtao Li, Rui Tang
Every Random Choice Rule Is Backwards-Induction Rationalizable, Jiangtao Li, Rui Tang
Research Collection School Of Economics
Motivated by the literature on random choice and in particular the random utility models, we extend the analysis in Bossert and Sprumont (2013) to include the possibility that players exhibit stochastic preferences over alternatives. We prove that every random choice rule is backwards-induction rationalizable.
Robust Jump Regressions, Jia Li, Viktor Todorov, George Tauchen
Robust Jump Regressions, Jia Li, Viktor Todorov, George Tauchen
Research Collection School Of Economics
We develop robust inference methods for studying linear dependence between the jumps of discretely observed processes at high frequency. Unlike classical linear regressions, jump regressions are determined by a small number of jumps occurring over a fixed time interval and the rest of the components of the processes around the jump times. The latter are the continuous martingale parts of the processes as well as observation noise. By sampling more frequently the role of these components, which are hidden in the observed price, shrinks asymptotically. The robustness of our inference procedure is with respect to outliers, which are of particular …
Reduced Forms And Weak Instrumentation, Peter C. B. Phillips
Reduced Forms And Weak Instrumentation, Peter C. B. Phillips
Research Collection School Of Economics
This paper develops exact finite sample and asymptotic distributions for a class of reduced form estimators and predictors, allowing for the presence of unidentified or weakly identified structural equations. Weak instrument asymptotic theory is developed directly from finite sample results, unifying earlier findings and showing the usefulness of structural information in making predictions from reduced form systems in applications. Asymptotic results are reported for predictions from models with many weak instruments. Of particular interest is the finding that, in unidentified and weakly identified structural models, partially restricted reduced form predictors have considerably smaller forecast mean square errors than unrestricted reduced …
How To Describe Objects?, Liu Peng
How To Describe Objects?, Liu Peng
Research Collection School Of Economics
This paper addresses the problem of randomly allocating n indivisible objects to n agents where each object can be evaluated according to a set of characteristics. The planner chooses a subset of characteristics and a ranking of them. Then she describes each object as a list of values according to the ranking of those chosen characteristics. Being informed of such a description, each agent figures out her preference that is lexicographically separable according to the characteristics chosen and ranked by the planner. Hence a description of the objects induces a collection of admissible preferences. We call a description good if …
Random Assignments On Preference Domains With A Tier Structure, Peng Liu, Huaxia Zeng
Random Assignments On Preference Domains With A Tier Structure, Peng Liu, Huaxia Zeng
Research Collection School Of Economics
We address a standard random assignment problem (Bogomolnaia and Moulin (2001)) and search forsd-strategy-proof, sd-efficient and sd-envy-free or equal-treatment-of-equals rules.Our main result is that on a connected domain (Sato (2013)),if there exists a rule satisfying these axioms, this domain is endowed with a restricted tier structure.Furthermore, we show that, on such a domain, the Probabilistic Serial rule is the unique rulethat satisfies these axioms.As an extension, we introduce outside options to the model, and establish the same characterizations.
On Estimating Market Microstructure Noise Variance, Yingjie Dong, Yiu Kuen Tse
On Estimating Market Microstructure Noise Variance, Yingjie Dong, Yiu Kuen Tse
Research Collection School Of Economics
We study the market microstructure noise-variance estimation of high-frequency stock prices. Based on the Hansen and Lunde (2006) approach, we propose estimates using subsampling method at different time scales. We conduct a Monte Carlo study to compare our method against others in the literature. Our results show that our proposed estimates have lower (absolute) mean error and root mean-squared error, and their performance is quite stable at different time scales.
Strategy-Proofness Of The Probabilistic Serial Rule On Sequentially Dichotomous Domains, Peng Liu
Strategy-Proofness Of The Probabilistic Serial Rule On Sequentially Dichotomous Domains, Peng Liu
Research Collection School Of Economics
A class of preference domains is proposed: sequentially dichotomous domains. On any sequentially dichotomous domain, the probabilistic serial rule (Bogomolnaia and Moulin (2001)) is sd-strategy-proof. In addition, any sequentially dichotomous domain is maximal for the probabilistic serial rule to be sd-strategy-proof.
Mixed-Scale Jump Regressions With Bootstrap Inference, Jia Li, Viktor Todorov, George Tauchen
Mixed-Scale Jump Regressions With Bootstrap Inference, Jia Li, Viktor Todorov, George Tauchen
Research Collection School Of Economics
We develop an efficient mixed-scale estimator for jump regressions using high-frequency asset returns. A fine time scale is used to accurately identify the locations of large rare jumps in the explanatory variables such as the price of the market portfolio. A coarse scale is then used in the estimation in order to attenuate the effect of trading frictions in the dependent variable such as the prices of potentially less liquid assets. The proposed estimator has a non-standard asymptotic distribution that cannot be made asymptotically pivotal via studentization. We propose a novel bootstrap procedure for feasible inference and justify its asymptotic …
When Price Precision Pays In Negotiations, Michael Schaerer
When Price Precision Pays In Negotiations, Michael Schaerer
Research Collection Lee Kong Chian School Of Business
When negotiating, is an offer of 99.95 euros better than 100 euros? Our recent study shows that there is no universally true answer to the question of price precision and that the right strategy depends on with whom you are negotiating.
Jump Regressions, Jia Li, Viktor Todorov, George Tauchen
Jump Regressions, Jia Li, Viktor Todorov, George Tauchen
Research Collection School Of Economics
We develop econometric tools for studying jump dependence of two processes from high-frequency observations on a fixed time interval. In this context, only segments of data around a few outlying observations are informative for the inference. We derive an asymptotically valid test for stability of a linear jump relation over regions of the jump size domain. The test has power against general forms of nonlinearity in the jump dependence as well as temporal instabilities. We further propose an efficient estimator for the linear jump regression model that is formed by optimally weighting the detected jumps with weights based on the …
Sharing Sequential Values In A Network, Ruben Juarez, Chiu Yu Ko, Jingyi Xue
Sharing Sequential Values In A Network, Ruben Juarez, Chiu Yu Ko, Jingyi Xue
Research Collection School Of Economics
Consider a sequential process where agents have individual values at every possible step. A planner is in charge of selecting steps and distributing the accumulated aggregate values among agents. We model this process by a directed network where each edge is associated with a vector of individual values. This model applies to several new and existing problems, e.g., developing a connected public facility and distributing total values received by surrounding districts; selecting a long-term production plan and sharing final profits among partners of a firm; choosing a machine schedule to serve different tasks and distributing total outputs among task owners. …
Associationistic Luce Rule, Jiangtao Li, Rui Tang
Associationistic Luce Rule, Jiangtao Li, Rui Tang
Research Collection School Of Economics
We develop an extension of Luce’s random choice model that incorporates a role forthe association of alternatives. Each alternative is characterized by a salience value, aLuce value, and its associated alternatives. The salience value captures the alternative’sability to attract the decision maker’s attention, and the Luce value measures thealternative’s desirability. The decision maker is first attracted by some alternativeaccording to a salience-based Luce-type formula, and then chooses among its associatedalternatives according to another desirability-based Luce-type formula. While retainingthe simplicity of the Luce rule, the theory accommodates some well-known behavioralphenomena in individual choice, such as the attraction effect (violations of regularity),and …
Inference Theory On Volatility Functional Dependencies, Jia Li, Viktor Todorov, George. Tauchen
Inference Theory On Volatility Functional Dependencies, Jia Li, Viktor Todorov, George. Tauchen
Research Collection School Of Economics
We develop inference theory for models involving possibly nonlinear transforms of the elements of the spot covariance matrix of a multivariate continuous-time process observed at high frequency. The framework can be used to study the relationship among the elements of the latent spot covariance matrix and processes defined on the basis of it such as systematic and idiosyncratic variances, factor betas and correlations on a fixed interval of time. The estimation is based on matching model-implied moment conditions under the occupation measure induced by the spot covariance process. We prove consistency and asymptotic mixed normality of our estimator of the …
Gray's Anatomy: Understanding Uncertainty, Juliana Yu Sun, Roberto M. Samaniego
Gray's Anatomy: Understanding Uncertainty, Juliana Yu Sun, Roberto M. Samaniego
Research Collection School Of Economics
We explore the key mechanisms whereby uncertainty impacts the business cycle by exploring the interaction of uncertainty with growth in industries with di⁄erent technologies of production. We nd that uncertainty shocks are particularly detrimental to growth in industries with rapid capital depreciation or high investment adjustment costs. The ndings are consistent with real options theory: uncertainty leads rms to delay investment in new projects, but high depreciation and xed costs of investment make delay more costly. On the other hand, we do not nd evidence of a signicant role of nancial markets in the generation nor propagation of uncertainty shocks.