Some economists argue antitrust policy should be based on empirical methods used by the Industrial Organization subdiscipline of economics, but non-economists must understand that those methods contain certain highly restrictive assumptions. Those assumptions involve econometric...

We reconsider the theory of Thompson aggregators proposed by Marinacci and Montrucchio (2010). We demonstrate the Koopmans equation has a unique utility function solution given a Thompson aggregator. Uniqueness holds only on the interior of the commodity space's positive cone. We verify Du's...

We study noisy aggregation of dispersed information in financial markets without imposing parametric restrictions on preferences, information, and return distributions. We provide a general characterization of asset returns by means of a risk-neutral probability measure that features excess...

This study examines how aggregation in financial reporting leads to information loss using a sample of firms that report individual financial assets. The level of information loss increases with the level of aggregation; however, combining assets with similar risk-factor exposures mitigates this...

Much economic analysis derives policy recommendations based on social welfare criteria intended to model the preferences of a policy maker. Yet, little is known about policy maker’s normative views in a way amenable to this use. In a behavioral experiment, we elicit German legislators’...

This study explores environmental, social and governance (ESG) rating disagreement among different providers, given the variation and lack of consensus in ESG ratings. We utilise three prominent ESG ratings (Sustainalytics, MSCI and Asset4) and employ four aggregation methods (equal-weighted...

Consider a group of economists evaluating a long-term project by using quasi- hyperbolic rules. The parameters (discount rates and present bias) used by each economist may differ, which implies different policy recommendations. Then a policy maker has to choose a socially efficient aggregation...