We consider the mechanism design problem when agents' types are multidimensional and continuous, and their valuations are interdependent. If there are at least three agents whose types satisfy a weak correlation condition, then for any decision rule there exist balanced transfers that render...

Thomas Schelling, winner of the 2005 Nobel Memorial Prize in Economics, was a Founding Father of the Kennedy School of Government. He served the School warmly and well for many years. Schelling always served as an inspiration for his creativity, and as an exemplar for his ability to make his...

This paper identifies a novel function for permits: they can be used by the government as an instrument to elicit information about the intentions of private investors to put capital into an area. Such information is a crucial input for the government's decision on how much infrastructure to...

From David Ricardo making a fortune buying British government bonds on the eve of the Battle of Waterloo to Warren Buffett selling insurance to the California earthquake authority, the wisest investors have earned extraordinary returns by investing in the unknown and the unknowable (UU). But...

Hurricane Katrina did massive damage because New Orleans and the Gulf Coast were not appropriately protected. Wherever natural disasters threaten, the government - in its traditional role as public goods provider - must decide what level of protection to provide to an area. It does so by...

Due to betrayal aversion, people take risks less willingly when the agent of uncertainty is another person rather than nature. Individuals in four countries (Brazil, Switzerland, the United Arab Emirates and the United States) confronted either a binary-choice trust game or a risky decision...

A lie involves three elements: deceptive intent, an inaccurate message, and a harmful effect. When only one or two of these elements is present we do not call the activity lying, even when the practice is no less morally questionable or socially detrimental. This essay explores this area of...