Online platforms are prone to abuse and manipulations from strategic parties. For example, social media and review websites suffer from sentiment manipulations, manifested in the form of opinion spam and fake reviews. The consequence of such manipulations is the deterioration of information...

We solve the problem of optimal securitization for an issuer facing heterogeneous investors with arbitrary time and risk preferences. We show that the optimal securitization is characterized by multiple nonlinear tranches, and each investor gets a portfolio of these tranches. In particular, when...

We solve the general problem of optimal risk sharing among a nite number of agents with limited liability. We show that the optimal allocation is characterized by endogenously determined ranks assigned to the participating agents and a hierarchical structure of risk sharing, where all agents...

In the last two decades, Internet technologies, such as cloud computing, mobile communications, social media, and big data analytics, have brought tremendous changes to our society and reshaped the business in various industries. Specifically, the mushrooming innovations in the financial area...

We set up a game-theoretic model to examine the oligopolistic price competition, considering two features of online search: the existence of a common search ordering and shoppers who have non-positive search cost. We find that in equilibrium firms set their prices probabilistically rather than...

Procurement auctions are sometimes plagued with a chosen supplier's failing to accomplish a project successfully. The risk of project failure is considerable, especially when the buyer has inadequate information about suppliers ex ante and the project can only be evaluated at the end. To manage...

Abstract Motivated by the thriving market of online display advertising, we study a problem of allocating numerous types of goods among many agents who have concave valuations (capturing risk aversion) and heterogeneous substitution preferences across types of goods. The goal is both to provide...

Designing business models that take into consideration the role of advertising support is critical to the success of online services. In this paper, we address the challenges of these business model strategies and compare different ad revenue models. We use game theory to model vertical...

The interdependency of information security risks often induces firms to invest inefficiently in IT security management. Cyberinsurance has been proposed as a promising solution to help firms optimize security spending. However, cyberinsurance is ineffective in addressing the investment...