An important appeal of strategy-proofness is the robustness that it implies. Under a strategy-proof voting rule, every individual has an optimal strategy independently of the behavior of all other voters, namely truth-telling. In particular, optimal play is robust with respect to the beliefs...

Modern life offers nearly unbridled access to information; it is the harnessing of this information to guide decision-making that presents a challenge. We study how one individual may try to shape the way another person interprets objective information by proposing a causal explanation (or...

There exist multiple rationales for the U.S. extraterritorial tax system. The rationales seek to explain why overseas Americans should be subject to worldwide taxation by the United States.This paper challenges those rationales: The allegiance rationale is outmoded and rejected by the U.S....

This paper examines games with strategic complements or substitutes and incomplete information, where players are uncertain about the opponents’ parameters. We assume that the players’ beliefs about the opponent’s parameters are selected from some given set of beliefs. One extreme is the...

We develop a tractable framework incorporating ambiguity aversion into rational inattention. We model uncertainty using smooth ambiguity (Klibanoff, Marinacci, and Mukerji, 2005) and define entropy-based information costs on the predictive prior distribution, which allows us to rewrite the...

We study the behaviour of prices and quantities in a model of bilateral trade with coordination frictions, capacity constraints, and risk aversion in small and large markets. The equilibrium markup over the expected return to the asset depends on the ratio of buyers to sellers and the level of...

This paper provides a sufficient monotonicity condition for the solution of a rationalizability procedure to not depend on the order of elimination. The analysis unfolds in an abstract environment that applies to any form of finite game and elimination procedure. The result applies to...

This paper builds an account of how people use role models as a heuristic that helps them overcome the uncertainty involved in 'transformative experiences', i.e. significant changes of personal identity. The use of role models is described in the context of markets (choosing a career), morality...

In the classical bargaining problems, we propose a very mild axiom of individual rationality, which we call Possibility of Utility Gain. This requires that for at least one bargaining problem, there exists at least one player who reaches a higher utility level than the disagreement point. This...