Showing 1 - 10 of 2,101
This paper develops an algorithm that enables to solve macroeconomic models with Rotemberg pricing and imperfect common … knowledge. Under the concept of imperfect common knowledge, Rotemberg pricing requires the solution algorithm to take prices … algorithm has to search for the policy function of the aggregate price and for the policy function of the firm-specific price …
Persistent link: https://www.econbiz.de/10012841148
We analyze the effects of better algorithmic demand forecasting on collusive profits. We show that the comparative statics crucially depend on the whether actions are observable. Thus, the optimal antitrust policy needs to take into account the institutional settings of the industry in question....
Persistent link: https://www.econbiz.de/10013296270
future market conditions, possibly aided by algorithms. Prices and profits are inverse u-shaped in prediction ability …
Persistent link: https://www.econbiz.de/10013310765
We run an online experiment to study the origins of algorithm aversion. Participants are either in the role of workers … in the role of a manager or by an algorithm. In a second set of experiments, managers choose whether they want to … delegate their hiring decisions to the algorithm. In the baseline treatments, we observe that workers choose the manager more …
Persistent link: https://www.econbiz.de/10014244326
We propose one of the first dynamic models of the optimal transition from fossil fuels to renewables in electricity generation that takes into account the variability and intermittency of renewable energy as well as storage. This work sheds light on the extent to which variability and...
Persistent link: https://www.econbiz.de/10012892147
This paper quantifies a tenant-side "split incentives" problem that exists when the largest commercial sector customers are on electricity-included property lease contracts causing them to face a marginal electricity price of zero. We use exogenous variation in weather shocks to show that the...
Persistent link: https://www.econbiz.de/10012866313
Electricity transmission redistributes environmental impacts across space. We exploit episodes of high electricity transmission system congestion to explore changes in ambient concentrations of air pollutants in the eastern United States. Reducing electricity system congestion decreases ozone...
Persistent link: https://www.econbiz.de/10012825399
Many policymakers view power outages as a major constraint on firm productivity in developing countries. Yet empirical studies find modest short-run effects of outages on firm performance. This paper builds a dynamic macroeconomic model to study the long-run general-equilibrium effects of power...
Persistent link: https://www.econbiz.de/10013309487
This paper develops a dynamic programming method when the one-stage deviation principle in the sense of mechanism design literature doesn’t hold. The commonly used dynamic programming method is valid only if the one-stage deviation principle in the sense of mechanism design literature is...
Persistent link: https://www.econbiz.de/10012889686
We propose a new method for solving high-dimensional dynamic programming problems and recursive competitive equilibria with a large (but finite) number of heterogeneous agents using deep learning. The „curse of dimensionality“ is avoided due to four complementary techniques: (1) exploiting...
Persistent link: https://www.econbiz.de/10013221172