An endowment effect can result in both multiple bidding and sniping in auctions. It can cause players to bid multiple times and overpay for items. Sniping is a rational response for experienced bidders looking to avoid the endowment effect. JEL: D44, D83

We compare a credit rating agency’s incentives to acquire costly information when it is only paid for giving favorable ratings the corresponding agency up-front, i.e., irrespective of assigned. show that, in presence moral hazard, contingent fees provide stronger dynamic than up-front and may induce higher social welfare. When fee structure chosen by agency, arise as an equilibrium outcome, lin...

We introduce noisy belief equilibrium (NBE) for normal-form games in which players best respond to realizations. Axioms restrict distributions be unbiased with respect and responsive changes the opponents’ behavior. The axioms impose testable restrictions both within across games, we compare these those of regular quantal response (QRE) are placed on function as primitive. NBE can generate simi...

We build a model in which the Fed and market disagree about future aggregate demand. The anticipates monetary policy “mistakes,” affect current demand induce to partially accommodate market’s view. expects implement its view gradually. Announcements that reveal an unexpected change Fed’s belief provide microfoundation for shocks. Tantrum shocks arise when misinterprets overreacts announcement. ...

This paper considers an interdependent-value robust mechanism design problem, where the principal has little knowledge about agent’s belief. Although ex post incentive-compatible (EPIC) mechanisms can implement allocations without any belief, we show that, under a certain condition (order-reversing interdependence), there exists non-EPIC that achieves strictly higher expected revenue than EPIC ...

The utilitarian aggregation rule requires social utility and beliefs to be a convex combination of individual utilities beliefs, respectively. Since, in the case belief heterogeneity, standard Pareto condition is incompatible with such separate aggregation, new condition, called belief-proof proposed alleviate occurrences spurious agreement by restricting unanimity that can considered reasonabl...

We relate two main representations of the cost acquiring information: a that depends on experiment performed, as in statistical decision theory, and distribution posterior beliefs, applications rational inattention. show many cases interest, posterior-based costs are inconsistent with primitive model costly experimentation. The inconsistency is at core known limits to application inattention ga...

Autocratic regimes, democratic majorities, private platforms, and religious or professional organizations can achieve social control by managing the flow of information about individuals’ behavior. Bundling agents’ political, organizational, attitudes with their prosocial conduct makes them care behaviors that they otherwise would not. The incorporation graph in score further promotes soft but ...

Determining the network of residues that transmit allosteric signals is crucial to understanding the function of biological nanomachines. During the course of a reaction cycle, biological machines in general, and Escherichia coli chaperonin GroEL in particular, undergo large-scale conformational changes in response to ligand binding. Normal mode analyses, based on structure-based coarse-grained...