Parties in financial markets, industries, compensation design or politics may negotiate on either a piecemeal or a bundled basis. Little is known about the desirability of bundling when values are common and/or information endogenous. The paper shows that bundling encourages...

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We propose a new model of exchange rates, which yields a theory of the forward premium puzzle. Our model is frictionless, has complete markets, and works for an arbitrary number of countries. Each country's exposure to disaster risk varies over time according to a mean-reverting process. Risky...

This paper discusses nonparametric identification in a model of sorting in which location choices depend on the location choices of other agents as well as prices and exogenous location characteristics. In this model, demand slopes and hence preferences are not identifiable without further...

We present two axiomatizations of the Second-Order Expected Utility model in the context of the standard models of choice under uncertainty.

When beginning a new project charities typically appeal to donors with a fundraising goal and a description of the project. For example, an organization may announce a \$200 million campaign to construct a new hospital. While goals are commonly used by fundraisers, there is little theoretical...