We derive an expression for the lifetime ruin probability (LRP), defined as the probability a fixed consumption plan will deplete an investment portfolio prior to a retiree's stochastic time of death, assuming the investment return driving the portfolio obeys a jump-diffusion process. This is in...

Extensive evidence suggests that participants in the direct student-proposing deferred-acceptance mechanism (DSPDA) play dominated strategies. In particular, students with low priority tend to misrepresent their preferences for popular schools. To explain the observed data, we introduce...

Despite the truthful dominant strategy, participants in strategy-proof me- chanisms submit manipulated preferences. In our model, participants dislike rejections and enjoy the confirmation from getting what they declared most desirable. Formally, the payoff from a match decreases in its position...

Evidence suggests that participants in direct student-proposing deferred-acceptance mechanisms (DA) play dominated strategies. To explain the data, we introduce expectation-based loss aversion into a school-choice setting and characterize choice-acclimating personal equilibria in DA. We find...

Extensive evidence suggests that participants in the direct student-proposing deferred-acceptance mechanism (DSPDA) play dominated strategies. In particular, students with low priority tend to misrepresent their preferences for popular schools. To explain the observed data, we introduce...

The aim of this paper is to propose a new solution for the roommate problem with strict references. We introduce the solution of maximum irreversibility and consider almost stable matchings (Abraham et al. [2]) and maximum stable matchings (Tan [30] [32]). We find that almost stable matchings...

We study dynamic matching in an infinite-horizon stochastic market. While all agents are potentially compatible with each other, some are hard-to-match and others are easy-to-match. Agents prefer to be matched as soon as possible and matches are formed either bilaterally or indirectly through...

The aim of this paper is to present a search model in the field of environmental economics, where so-called clean and dirty producers enter the trading market, both looking for a partner with whom to exchange the goods they are endowed with. The model derived in this paper is rather simple....

We introduce and solve a new class of quot;downward-recursivequot; static portfolio choice problems. An individual simultaneously chooses among ranked stochastic options, and each choice is costly. In the motivational application, just one may be exercised from those that succeed. This often...