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Economic Theory

Game theory, mechanism design, and microeconomic foundations.

econ.TH · 87 papers

Is Complexity the Problem? Testing Random Choice with Heterogeneity

A new framework tests if stochastic economic choices are due to comparison difficulty or preference heterogeneity, finding heterogeneity often explains it.

2605.01850May 3, 2026Shuhua Si

Integrating equity and productivity in health evaluation

This paper introduces a unified framework for health evaluation that jointly incorporates equity and productivity, extending traditional QALYs and PALYs.

2605.01763May 3, 2026Kristian S. Hansen, Juan D. Moreno-Ternero, Lars P. Østerdal

Strategy-proof and Efficient Job Matching with Participation Constraints

This paper analyzes the VCG mechanism's strategy-proofness, efficiency, and individual rationality for job matching under various firm utility conditions.

2605.01715May 3, 2026Sushil Bikhchandani, Debasis Mishra

Partition function form games with probabilistic beliefs

This paper introduces probabilistic beliefs into partition function games to analyze core non-emptiness under various externalities.

2605.01521May 2, 2026Paraskevas V. Lekeas, Giorgos Stamatopoulos

Networked Information Aggregation for Binary Classification

This paper analyzes networked binary classification on DAGs, showing network depth is a bottleneck for information aggregation in sequential logistic regression.

2605.01082May 1, 2026MohammadHossein Bateni, Zahra Hadizadeh, MohammadTaghi Hajiaghayi +2

Principal-agent problems with adverse selection: A stochastic target problem formulation

This paper reformulates principal-agent problems with adverse selection and unique contracts into stochastic target and optimal control problems.

2605.01080May 1, 2026Guillermo Alonso Alvarez, Ibrahim Ekren, Liwei Huang

Strategy Rescaling and the Stability of Kantian Optimization

Kantian optimization, through strategy rescaling, can neutralize Nash free-riders and achieve stable cooperation, proving evolutionarily stable.

2605.00692May 1, 2026Igor Sloev, Gerasimos Lianos

Computing Equilibrium beyond Unilateral Deviation

This paper introduces a new equilibrium concept that minimizes coalitional deviation incentives, guaranteeing existence and providing algorithms for computation.

2604.28186Apr 30, 2026Mingyang Liu, Gabriele Farina, Asuman Ozdaglar

Extreme Equilibria: The Benefits of Correlation

This paper shows that Nash equilibria with three or more randomizing agents can almost always be improved using correlated strategies.

2604.27258Apr 29, 2026Kirill Rudov, Fedor Sandomirskiy, Leeat Yariv

Many-to-many stable matching in large economies

This paper develops a method to transfer stability existence results from finite to large many-to-many matching models, showing tree-stable and pairwise-stable outcomes exist.

2604.26902Apr 29, 2026Michael Greinecke, Karolina Vocke

Measuring Choice Difficulty

This paper shows that common measures of choice difficulty (understanding, randomness, confidence) are generally unrelated, providing a framework for their relationship.

2604.26761Apr 29, 2026Chris Chambers, Yusufcan Masatolioglu, Paulo Natenzon +1

A simple characterization of single-peaked domains

A simple characterization of single-peaked domains on a tree is achieved through the strategy-proofness of extreme rules.

2604.26563Apr 29, 2026Mihir Bhattacharya, Anup Pramanik

Dynamic Cheap Talk without Feedback

This paper shows that dynamic interaction in cheap talk games without feedback partially restores commitment, allowing specific persuasion model payoffs to be achieved.

2604.26443Apr 29, 2026Atulya Jain

Sequential Equilibria in a Class of Infinite Extensive Form Games

This paper defines sequential equilibrium for a new class of infinite extensive-form games, ensuring existence and refinement of Nash equilibria.

2604.25784Apr 28, 2026Michael Greinecker, Martin Meier, Konrad Podczeck

The Core in a Distributional Economy

This paper shows core analysis and blocking coalitions can be identified in distributional economies, providing a new proof of core-equivalence.

2604.25761Apr 28, 2026Michael Greinecker, Konrad Podczeck

Coordination in complex environments

This paper studies coordination in complex environments, identifying a new conformity phenomenon that influences exploration or status-quo bias.

2604.24757Apr 27, 2026Pietro Dall'Ara

Comonotonic improvement under feasibility constraints

This paper identifies 'componentwise convex-order solidity' as a condition for preserving comonotonic improvement in risk-sharing problems with feasibility constraints.

2604.24546Apr 27, 2026Christopher Blier-Wong, Jean-Gabriel Lauzier

Decomposing Common Agency

This paper introduces a decomposition method for common agency games, simplifying principals' best-response to a screening problem and revealing new equilibrium structures.

2604.23971Apr 27, 2026Zhiming Feng

Rigidity and default in production networks

This paper explores how informational rigidity and external debt in production networks transmit productivity shocks, leading to default and welfare losses.

2604.23566Apr 26, 2026Giacomo Como, Fabio Fagnani, Elisa Luciano +2

Fast Core Identification

A new algorithm identifies core allocations in matching markets in optimal $\bigO{n}$ time, outperforming full TTC computation.

2604.25954Apr 25, 2026Irene Aldridge
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