An unresolved problem in Bayesian decision theory is how to value and price information. This paper resolves both problems assuming inexpensive information. Building on Large Deviation Theory, we produce a generically complete asymptotic order on samples of i.i.d. signals in finite-state,...

This paper brings together the microeconomic-labor and the macroeconomic-equilibrium views of matching in labor markets. We nest a job matching model à la Jovanovic (1984) into a Mortensen and Pissarides (1994)-type equilibrium search environment. The resulting framework preserves the...

We introduce and solve a new class of "downward-recursive" static portfolio choice problems. An individual simultaneously chooses among ranked stochastic options, and each choice is costly. In the motivational application, just one may be exercised from those that succeed. This often emerges in...

In Becker's (1973) neoclassical marriage market model, matching is positively assortative if types are complements: i.e. match output is supermodular. We reprise this famous result assuming time-intensive partner search and transferable output. We prove existence of a search equilibrium with a...

This paper explores how Bayes-rational individuals learn sequentially from the discrete actions of others. Unlike earlier informational herding papers, we admit heterogeneous preferences. Not only may type-specific "herds" eventually arise, but a new robust possibility emerges: "confounded...