We consider a dynamic matching problem where players are repeatedly assignedtasks and can choose whether to accept or reject them. Players prefer to avoidcertain tasks (“hot potatoes”) while other tasks give a positive payoff (“sweet pota-toes”). There are frictions in the matching...

The value of a game is the payoff a player can expect from playing the game. Wecharacterize how the value of a coordination game depends on the economic environment.The central insight is that players face two types of coordination problems: (1) How tocoordinate on a Nash equilibrium (i.e.,...

This paper shows that the logical properties of constraints imposed by law are fundamentally different from other constraints considered in economics such as budget constraints and bounded rationality constraints, such as the ones based on inattention or shortlisting. This suggests that to fully...

This paper models an agent in a multi-period setting who does not update according to Bayes' Rule, and who is self-aware and anticipates her updating behavior when formulating plans. Choice-theoretic axiomatic foundations are provided to capture updating biases that reflect excessive weight...

A decision maker, named Alice, wants to know if an expert has significant information about payoff-relevant probabilities of future events. The expert, named Bob, either knows this probability almost perfectly or knows nothing about it. Hence, both Alice and the uninformed expert face...

In 1908 the Welsh neurologist and psychoanlayst Ernest Jones described human beings as rationalizers whose behavior is governed by "the necessity of providing an explanation." We construct a formal and testable model of rationalization in which a decision maker selects her preferred alternative...