What is the effect of ambiguity aversion on trade? Although in a Bewley's model ambiguity aversion always lead to less trade, in other models this is not always true. However, we show that if the endowments are unambiguous then more ambiguity aversion implies less trade, for a very general class...

Forecasting electricity demand for future years is an essential step in resource planning. A common approach is for the system operator to predict future demand from the estimates of individual distribution companies. However, the predictions thus obtained may be of poor quality, since the...

This paper shows a somehow counterintuitive result: an increase in the exam diculty may reduce the average quality (productivity) of selected individuals. Since the exam does not verify all skills, when its standard rises, candidates with relatively low skills emphasized in the test and high...

Affiliation has been a prominent assumption in the study of economic models with statistical dependence. Despite its large number of applications, especially in auction theory, affiliation has limitations that are important to be aware of. This paper shows that affiliation is a restrictive...

This is a corrigendum to Theorem 15 of Jackson and Swinkels (2005) [Existence of Equilibrium in Single and Double Private Value Auctions, Econometrica, 73, 93-140], which proves the existence of equilibrium with positive probability of trade for private value auctions.

We prove the existence of monotonic pure strategy equilibrium for many types of asymmetric auctions with n bidders and unitary demands, interdependent values and independent types. The assumptions require monotonicity only in the own bidder's type. The payments can be a function of all bids....

This paper provides first order conditions for a very general class of single or multi-unit auctions. Under mild conditions we characterize bidding-behavior and generalize previous standard results in the literature. As an application we obtain sufficient conditions for truth-telling, monotonic...

Within the private-values paradigm, we construct a tractable empirical model of equilibrium behaviour at first-price auctions when bidders' valuations are potentially dependent, but not necessarily affiliated. We develop a test of affiliation and apply our framework to data from low-price,...

The translation of statements from auctions to procurements is not always straightforward. We define a duality relationship between them and provide the appropriate transformations needed for establishing it. Additionally, we prove that affiliation is preserved under these transformations and...