The collaborative consumption of an asset, such as a car, an appliance, or a power tool, tends to degrade it faster than when it is kept for purely personal use. This paper examines the rational dynamic decision of when to share an asset and when to use it only privately. An optimal policy...

We develop a general framework for optimal health policy design in a dynamic setting. We consider a hypothetical medical intervention for a cohort of patients where one parameter varies across cohorts with imperfectly observable linear dynamics. We seek to identify the optimal time to change the...

The world economy is undergoing dramatic changes, largely driven by the new availability of fine-grained information. Innovative ways of using data—large and small—have also prompted a rethinking of the boundaries for the combination and use of knowledge. The strategic design of information...

We construct a ‘reflexivity' index to measure the activity generated endogenously within a market for cryptocurrencies. For this purpose, we fit a univariate self-exciting Hawkes process with two classes of parametric kernels to high-frequency trading data. A parsimonious model of both...

We introduce an augmented Becker-DeGroot-Marschak mechanism for the revelation of willingness-to-accept and willingness-to-pay in transaction cycles. The mechanism can be used to test for a behavioral anomaly

Temporary water transfers, as achievable under option contracts, capture gains from trade that would go unrealized if only permanent transfers of water rights were possible. This paper develops a bilateral option contracting model for water which includes the possibility of conveyance losses and...

We consider a confidence parametrization of binary information sources in terms of appropriate likelihood ratios. This parametrization is used to construct tools for Bayesian belief updates and for equivalent comparisons of binary experiments. First, we provide a Bayesian Update Diagram, which...

We show that the Hicksian welfare measures of compensating variation and equivalent variation coincide if one of them is evaluated at a compensated income. The measures are nondecreasing in income if the varied attribute and income are complementary, and indirect utility is concave in income....