Harris, Reny, and Robson (1995) added a public randomization device to dynamic games with almost perfect information to ensure existence of subgame perfect equilibria (SPE). We show that when Nature's moves are atomless in the original game, public randomization does not enlarge the set of SPE...

This paper experimentally studies stipulated damages as a rent-extraction mechanism. We demonstrate that contract renegotiation induces the sellers to propose the lowest stipulated damages and the entrants to offer the highest price more frequently. We show that complete information about the...

In response to debt crises, policy makers often feature Collective Action Clauses (CACs) in sovereign bonds among the pillars of international financial architecture. However, the content of official pronouncements about CACs suggests that CACs are more like doorknobs: a process tool with...

This paper analyzes the design of tests to distinguish human from artificial intelligence through the lens of information design. We identify a fundamental asymmetry: while AI systems can strategically underperform to mimic human limitations, they cannot overperform beyond their capabilities....

We develop a model of strategic information provision where politicians choose how to allocate limited disclosure across multiple policy dimensions. Citizens are heterogeneous statistical learners who interpret data differently, following Liang (2021). Our key insight: spreading information...

The canonical example of unprotected speech--falsely shouting "fire" in a crowded theatre--presumes such an act inevitably causes harmful panic. This paper challenges that presumption through a game-theoretic analysis of evacuation dynamics. I model a theatre as an N * M grid where rational...

This paper analyzes patterns of majority language acquisition in an economy consisting of a majority group and multiple minority groups. We consider contexts in which allows individuals choose among three options: full learning, partial learning, or no learning of the majority language. The key...

Over the last few years, open source software (OSS) development has gained a huge popularity and has attracted a large variety of developers under its fold. According to software engineering folklore, the architecture and the organization of software depend on the communication patterns of the...

We present an extension to any finite complete information game with two players. In the extension, players are allowed to communicate directly and, additionally, send private messages to a simple, detail-free mediator, which, in turn, makes public announcements as a deterministic function of...