We study a compensation problem for salespeople with learning potential. In our model, both the firm and sales agent are risk neutral and forward-looking; the agent can privately observe his skill, exert effort, and learn from experience; the firm can learn from the agent's choice and revise sales...

We aim to understand the role and evolution of beliefs in the indefinitely repeated prisoner’s dilemma (IRPD). To do so, we elicit beliefs about the supergame strategies chosen by others. We find that heterogeneity in beliefs and changes in beliefs with experience are central to understanding...

We report on an experiment testing the empirical relevance of least squares (LS) learning, a common way of modelling how individuals learn a rational expectations equilibrium (REE). Subjects are endowed with the correct perceived law of motion (PLM) for a price level variable they are seeking to...

Revealing inventory scarcity messages to customers to trigger scarcity effect is an important and widely adopted way to promote sales in online platforms. Under such circumstances, the demand is affected by both price and scarcity messages. In this article, we study the joint dynamic pricing and...

Social networks rely on sharing engaging content for their users. Since continued production of user-generated content is critical to their success, they have constructed a variety of tools to motivate new content creation, to facilitate user discovery of new content, and to provide attention...

Mitigating climate change has become an essential issue of global concern, with the development of renewable energy being a meaningful way to do so. Subsidy policies have played a vital role in promoting renewable energy development. However, considering the limited number of subsidies,...

We introduce the algorithmic learning equations (ALEs), a set of ordinary differential equations which characterizes the finite-time and asymptotic behaviour of the stochastic interaction between state-dependent learning algorithms in dynamic games. Our framework allows for a variety of...

This paper analyzes monetary policy in a model with a potential unanchoring of inflation expectations. The degree of unanchoring is given by how sensitively the public’s long-run inflation expectations respond to inflation surprises. I find that optimal policy moves the interest rate...