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This paper demonstrates theoretically and experimentally that in first price auctions overbidding with respect to the risk neutral Nash equilibrium might be driven from anticipated loser regret...
There is a large literature on why countries choose to issue debt rather than financing expenditures by current taxation. If Ricardian Equivalence holds and taxes are non-distortionary,then it doesn’t...
One of the more important questions in the area of quantitative economic policy concerns the suitability of optimal control theory for economic stabilization problems. Despite extensive theoretical ...
During the past decade the theoretical framework underlying macroeconomic stabilization analysis has undergone a number of significant developments. Theories designed to explain the crucial linkage ...
Economic Theory, Model Size, and Model Purpose.
The non-stochastic model which is the focus of discussion in Part I of the book consists of three assets (money, government bonds, and equities) and three sectors (households, firms, and government)...
Do We Get More Out of Theory Than We Put In?
We develop a unifying framework for optimal income taxation in multi-activity economies with general production technologies. Agents are characterized by an N-dimensional skill vector that captures in...
When I interact with colleagues and friends who are venturing into experimental economics, either as they prepare for their own experiment, or aim for a critical view of experiments run by others, I o...
In our leading example, buyers affiliated with Stanford University have exclusive access to houses on campus.1 We begin by presenting evidence on house prices on and right around Stanford’s ...
Neuroeconomic conditions for “rational addiction” (Becker and Murphy, 1988) have been unknown. This paper derived the conditions for “rational addiction” by utilizing a nonlinear time-perception theor...
Randomization is a common feature of everyday resource allocation. We generalize the theory of randomized assignment to accommodate various real-world constraints such as group-specific quotas (“contr...
We present an equilibrium search model that parsimoniously rationalizes several de ning patterns of online markets for new goods. We model buyers in these markets as having a deadline by which the go...
Putting Auction Theory to Work:The Simultaneous Ascending Auction.

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