Game Theory is the branch of applied mathematics that studies the strategic interaction among intelligent agents. So far, standard Game Theory literature has interpreted "intelligent agents" exclusively as "rational agents". This work points out that this interpretation is an important limitation since intelligence consists of more abilities, some of which...
We first introduce the concept of copulas and advocate its use for multivariate option pricing. We focus on four types of bivariate options: basket, rainbow-max, rainbow-min, and spread options. We derive expressions for these options as a function of the copula. We then construct pricing bounds for these bivariate options...
Chapter 1: (Bounds on the Counterfactual Revenue Distributions in Auctions with Reserve Prices) In first-price auctions with interdependent bidder values, the distributions of private signals and values cannot be uniquely recovered from bids in Bayesian Nash equilibria. Non-identification invalidates structural analyses that rely on exact identification of the model primitives....
The main theme of this dissertation are departures from standard assumptions in economic theory, specifically, departures from the model of subjective expected utility in decision theory.
Part 1 axiomatizes the robust control criterion of multiplier preferences introduced by Hansen and Sargent (2001). The axiomatization shows that the class of multiplier...
The expansion of public education at the beginning of the twentieth century had a profound effect on the American economy. This dissertation explores the impact of changing educational institutions on both individuals and communities with a study of Iowa during its introduction of modern grammar schools and high schools during...
In the first chapter we analyze profits and efficiency implications of a relation between an upstream duopoly and downstream monopoly in Hotelling linear city model. While exclusive contracts maximize the monopolist's profit, at the same time socially they are inefficient. Linear prices, while more efficient, usually also do not achieve...
This dissertation consists of three essays on the identification analysis of econometric models.
The first essay explores the identification question in semiparametric binary response models when all regressors have discrete support. I suggest a recursive procedure that finds sharp bounds on the parameter of interest and can be applied to...
In the first part of the dissertation I study mechanism design under limited communication. Chapter 1 offers a detailed analysis of auctions with simultaneous limited communication. I solve for both welfare and revenue maximizing equilibria. The striking feature of optimal equilibria is that they are asymmetric even when the setup...
Ethicity, race and gender play an important role in labor markets; labor market outcomes such as hiring and compensation are very different across different social groups. These differentials are partly the result of differences in productivity and preferences and partly the result of discrimination. Chapter two uses an audit study...
In the first chapter of my dissertation, I study the effects of an exogenous increase in government spending in models incorporating price and wage nominal rigidities. I find that the effects of price stickiness on the output multiplier depend crucially on the behavior of the monetary authority. If the monetary...