The paper introduces the problem of unawareness into multi-dimensional Principal-Agent theory. We introduce two key parameters to describe the problem, the extent and the e ffect of unawareness, show under what conditions it is optimal for the Principal to propose an incomplete or a complete...

Hesitation in the marketplace has the potential to betray private information. Recent results from lab experiments have confirmed that subjects’ response times reveal their strength-of-preference or belief, even in strategic settings. What remains unclear is whether these results extend beyond...

I empirically separate two components in a consumer’s privacy preference. The intrinsic component is a “taste” for privacy, a utility primitive. The instrumental component comes from the consumer’s anticipated economic loss from revealing his private information to the firm, and arises...

We study a model of online news dissemination on a Twitter-like social network. Given a news item and its credibility, agents with heterogeneous priors strategically decide whether to share the news with their followers. An agent shares the news, if the news can persuade her followers to take an...

In this paper, we study a model of online news dissemination on a Twitter-like social network. Given a noisy observation of the state of the world henceforth called the news, agents with heterogeneous priors decide whether to share with their followers based on whether receiving the news can...

A central assumption of the canonical cheap talk literature is that people misreport their private information if this is to their material benefit. Recent evidence from laboratory experiments with student subjects suggests, however, that while many people do report the payoff-maximizing...

Uno de los aspectos de la pobreza que no ha sido explorado empíricamente es aquel que tiene que ver con las aspiraciones económicas, entendidas como el deseo o la pretensión de un mayor ingreso futuro. Mediante modelos probit ordenados y estimación por máxima verosimilitud se busca...

Many types of economic and social activities involve significant behavioral complementarities (peer effects) with neighbors in the social network. The same activities often exert externalities that cumulate in "stocks" affecting agents' welfare and incentives. For instance, smoking is subject to...

Cloud computing, which can be described as a technology for provisioning computing infrastructure as a service, runtime platform as a service, and software as a service, is considered as a keystone for innovation in the IT area. However, a limiting factor to innovation through cloud computing...

This paper reports the results of a laboratory experiment on network formation among heterogeneous agents. The experimental design extends the basic Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by allowing for agents with lower linking costs or higher...