In European day-ahead electricity markets, carbon allowance costs passed through by marginal fossil plants raise consumer expenditure and generate inframarginal rents for non-emitting generators. We propose a settlement modification: when the zonal day-ahead price exceeds a threshold,...

In a strategy-proof mechanism, implementation theory mostly assumes that each agent is rational in the sense that the agent reveals its true preference to induce its most preferred outcome. This assumption is sufficient to guarantee that the agent seeks such an outcome, but not necessary because...

Public school choice has evolved rapidly in the past two decades, as districts roll out new magnet, dual-language, and themed programs to broaden educational opportunity. We use newly collected national data to document that opt-in (voluntary) systems: (i) are the modal design; (ii) are harder...