2,902 research outputs found
Disclosure and choice
An agent chooses among projects with random outcomes. His payoff is increasing in the outcome and in an observer's expectation of the outcome. With some probability, the agent can disclose the true outcome to the observer. We show that choice is inefficient: the agent favors riskier projects even with lower expected returns. If information can be disclosed by a challenger who prefers lower beliefs of the observer, the chosen project is excessively risky when the agent has better access to information, excessively risk{averse when the challenger has better access, and efficient otherwise. We also characterize the agent's worst-case equilibrium payoff
Reflexivity and rigidity for complexes, II: Schemes
We prove basic facts about reflexivity in derived categories over noetherian
schemes; and about related notions such as semidualizing complexes, invertible
complexes, and Gorenstein-perfect maps. Also, we study a notion of rigidity
with respect to semidualizing complexes, in particular, relative dualizing
complexes for Gorenstein-perfect maps. Our results include theorems of
Yekutieli and Zhang concerning rigid dualizing complexes on schemes. This work
is a continuation of part I, which dealt with commutative rings.Comment: 40 page
Mechanisms with evidence: commitment and robustness
We show that in a class of Iāagent mechanism design problems with evidence, commitment is unnecessary, randomization has no value, and robust incentive compatibility has no cost. In particular, for each agent i, we construct a simple disclosure game between the principal and agent i where the equilibrium strategies of the agents in these disclosure games give their equilibrium strategies in the game corresponding to the mechanism but where the principal is not committed to his response. In this equilibrium, the principal obtains the same payoff as in the optimal mechanism with commitment. As an application, we show that certain costly verification models can be characterized using equilibrium analysis of an associated model of evidence.Accepted manuscrip
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