A dynamic model with learning and adaptation captures the evolution in trader beliefs and trading strategies. Through a process of learning and observation, traders improve their understanding of the market. Traders also engage in a process of adaptation by switching between trading strategies based on past performance. The asymptotic properties are derived analytically, demonstrating that conv...

This paper introduces assets for which the intrinsic value is endogenous to the amount of funding attracted. A Rational Expectations Equilibrium is developed. Additionally, simulations of the model based on bounded rationality explore the different market behavior under fundamental and momentum based investing strategies. Both strategies produce herding characteristics. The herding under the fu...

What are the consequences of making bids and offers in the book available to traders in a call market? This is a problem in market design. We employ a computational mechanism design methodology to attack this problem and find that allocative efficiencies are higher in a closed book design. We validate our computational approach by running a series of tests with human subjects in exactly the sam...

This paper studies, theoretically and experimentally, the effects of overconfidence fake news on information aggregation quality democratic choice in a common-interest setting. We show that exacerbates adverse widespread misinformation (i.e., news). then analyze richer models allow for partisanship, targeted intended to sway public opinion, signals correlated across voters (due media ownership ...

We investigate how strategic behavior is affected by the set of notions (frames) used when thinking about game. In our games action consists visual objects: each player must privately choose one, trying to match counterpart’s choice. propose a model where different player-types are aware attributes (hence, frames). One novelties an epistemic structure that allows players think new frames, after...

We study the impact of deliberation on intertemporal choices. Using multiple experiments, including a field in Democratic Republic Congo, we show that introduction waiting periods—a policy temporally separates information about choices from themselves—causes substantially less myopic decisions. These results cannot be captured by models exponential discounting nor present bias. Comparing effect...

I conduct a survey experiment to study the relationship between people’s beliefs about size of gender wage gap and their demand for policies aimed at mitigating it. Beliefs causally affect support equal pay legislation affirmative action programs, but cannot account polarization in policy views by partisanship gender. Changes seem be driven changes discrimination labor markets fairness concerns...

This essay surveys the literature on directed search and competitive equilibrium, covering theory a variety of applications. These models share features with traditional theory, but also differ in important ways. They general equilibrium explicit frictions. Equilibria are often efficient, mainly because markets price goods plus time required to get them. The approach is tractable arguably reali...

Digitization has led to many new creative products, straining the capacity of professional critics and consumers. Yet, digitization retailing also delivered crowd-based sources pre-purchase information. We compare relative impacts Amazon star ratings on consumer welfare in book publishing. Using various fixed effects discontinuity-based empirical strategies, we estimate their causal sales. use ...