We connect variational preferences with the likelihood functions and prior probabilities over parameters that are building blocks of statistics and econometrics. We use relative entropy and other statistical divergences as cost functions in the variational preferences of someone who is ambiguous...

This paper considers the problem of second-degree price discrimination when the type distribution is unknown or imperfectly specified by means of an ambiguity set. As robustness measure we use a performance index, equivalent to relative regret, which quantifies the worst-case attainment ratio...

Randomization inference provides exact finite sample tests of sharp nulls which precisely specify the outcomes associated with randomized treatment. A growing literature shows that when based upon studentized statistics these same tests, despite incorrectly assuming an absence of heterogeneity,...

This paper studies the principal-agent framework in which the principal wants to implement his first-best action. The principal privately selects a signal structure about the unknown state of the agent whose preferences depend on the principal's action, the state and a privately known agent's...