We consider a general multi-principal multi-agent contracting game in a complete-information supply-chain setting and determine coordinating equilibrium transfer schedules in closed form. The resulting contracts manage to align incentives for decentralized decision-making and achieve first-best...

We consider comparative statics of solutions to parameterized optimization problems. A geometric method is developed for finding a vector field that, at each point in the parameter space, indicates a direction in which monotone comparative statics obtain. Given such a vector field, we provide...

In this paper we pursue three main objectives: (1) to develop a model of an intermediated search market in which matching between consumers and firms takes place primarily via paid referrals; (2) to address the important managerial question (for a search intermediary) of finding a suitable...

We discuss the general problem of finding fair constrained resource allocations. As criterion for fairness we propose an inequality index, termed fairness ratio, the maximization of which produces Lorenz-undominated Pareto-efficient allocations. Since the fairness ratio does not depend on the...

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....

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...

It is natural for humans to judge the outcome of a decision under uncertainty as a percentage of an ex-post optimal performance. We propose a robust decision-making framework based on a relative performance index. It is shown that if the decision maker's preferences satisfy quasisupermodularity,...