Clustering methods group individuals or objects based on information about their similarity or proximity. When the raw information to generate clusters cannot be easily observed or verified, the cluster designer must rely on information reported by individuals behind the observations. When these...

This paper studies industry evolution driven by non strategic learning by doing and spillovers. We characterize a dynamic process of cost and output changes and its effect on welfare and industry profits. The paper gives conditions for shakeouts to occur and analyzes the key factors affecting...

We study experimentally in the laboratory the situation when individuals have to report their private information (that is commonly known to be the sum of an observable and a random component) to a public authority that then makes inference about the true value hold by each of the individuals....