This note discusses functions over lotteries that are concave and continuous, but not necessarily superdifferentiable. Machina [1984] and Maccheroni [2002]’s analyses of utility functions over lotteries and the statement of Theorem 2 in Frankel and Kamenica [2019]’s proposed measure of...

AbstractAbstract We study a model of institutions that evolve through conflict. We find that one of three configurations can emerge: an extractive hegemony, a balance of power between extractive societies or a balance of power between inclusive societies - the latter being most conducive to...

Much has been written about deterrence, the process of committing to punish an adversary to prevent an attack. But in sufficiently rich environments where attacks evolve over time, formulating a strategy involves not only deterrence but also appeasement, the less costly process of not responding...

We argue that standard models of voting do a bad job explaining the frequency of very close mass elections with high turnout. We instead model head-to-head elections as a competition between incentive schemes to turn out voters and elucidate conditions under which parties might prefer close...

The introduction of artificially intelligent algorithms in pricing decisions by firms has triggered a literature in industrial organization asking if the use of these algorithms will lead to collusive outcomes. In a simple repeated game environment it is shown that if algorithms can be reliably...