This paper deals with the identification and estimation of dynamic games when players’ beliefs about other players’ actions are biased, i.e., beliefs do not represent the probability distribution of the actual behavior of other players conditional on the information available....

We derive marginal conditions of optimality (i.e., Euler equations) for a general class of Dynamic Discrete Choice (DDC) structural models. These conditions can be used to estimate structural parameters in these models without having to solve for or approximate value functions. This result...

The development of two-step econometric methods for dynamic structural models has afforded researchers the ability to estimate models with large state spaces without having to compute a full solution of the model even once. However, regardless of the method used for estimation, the...

We exploit the introduction of pedestrian countdown signals—timers that indicate when traffic lights will change—to evaluate a policy that improves the information of all market participants. We find that although countdown signals reduce the number of pedestrians struck by automobiles, they...

Most studies analyzing the adjustments of workers to discrimination focus on sorting decisions, such as occupations workers pursue. We instead analyze on-the-job adjustments, focusing on the effects of discrimination by consumers. Specifically, using extraordinary data from a large-scale...

This paper deals with the identification and estimation of dynamic games when players' beliefs about other players' actions are biased, i.e., beliefs do not represent the probability distribution of the actual behavior of other players conditional on the information available. First, we show...

This paper considers the problem of an imperfectly informed regulator constrained in his choice of environmental regulation by the political opposition of those affected by the policy. We compare the value of two types of information to the regulator: the social cost of pollution and the...

We study the effects of providing the public with information about impending events. Specifically, we draw on a natural experiment to evaluate the impact that pedestrian countdown signals - timers that indicate when traffic lights will change from green to yellow - have on the behavior and...

The convergence of policy choices across governments is often rationalized as the outcome of countries learning from each others experiences. However, policy convergence can also arise if policymakers fear being alone in their decisions, and have career concerns should they subsequently be...

This paper studies the decision to ratify United Nations Human Rights Treaties (HRT). We present new empirical evidence that sheds light on who ratifies when and why. For a foreign aid receiving country, high levels of predetermined treaty participation relative to other aid recipients has a...