Estimating Price Sensitivity of Economic Agents Using Discontinuity in Nonlinear Contracts

This paper proposes a method to estimate price sensitivity of economic agents using nonlinear contracts. Our proposed estimator exploits discontinuity in nonlinear contracts. As an application, we study contracts between a managed care organization and hospitals for organ transplants. Exploiting “donut holes”in the reimbursement contracts, we show that hospitals submit signi…cantly larger bills when the reimbursement rate is higher, indicating information asymmetries between the insurer and hospitals in this market. Our methodology is applicable to important classes of models such as consumer choice under nonlinear pricing and contracting with nonlinear incentives

Low-rank tensor completion: a Riemannian manifold preconditioning approach Hiroyuki Kasai

Abstract We propose a novel Riemannian manifold preconditioning approach for the tensor completion problem with rank constraint. A novel Riemannian metric or inner product is proposed that exploits the least-squares structure of the cost function and takes into account the structured symmetry that exists in Tucker decomposition. The specific metric allows to use the versatile framework of Riemannian optimization on quotient manifolds to develop preconditioned nonlinear conjugate gradient and stochastic gradient descent algorithms for batch and online setups, respectively. Concrete matrix representations of various optimization-related ingredients are listed. Numerical comparisons suggest that our proposed algorithms robustly outperform state-ofthe-art algorithms across different synthetic and real-world datasets