The paper discusses two important extensions to the well known Value-at-Risk (VaR) methodology, namely Extreme Value Theory (EVT) and Expected Shortfall (ES). Both of these extensions address the weaknesses of Value-at-Risk, in particular the methodology's tendency to systematically...

The matching literature commonly rules out that market design itself shapes agent preferences. Underlying this premise is the assumption that agents know their own preferences at the outset and that preferences do not change throughout the matching process. Under this assumption, a centralized...

The matching literature commonly rules out that market design itself shapes agent preferences. Underlying this premise is the assumption that agents know their own preferences at the outset and that preferences do not change throughout the matching process. Under this assumption, a centralized...