We develop an extension of Luce's random choice model that incorporates a role for the association of alternatives. Each alternative is characterized by a salience value, a Luce value, and its associated alternatives. The salience value captures the alternative's ability to attract the decision...

In this paper, we extend the stability notion and Bayesian efficiency notion of Liu (2020) to local ones, as well as his result—that under certain intuitive conditions, stable matchings are Bayesian efficient—to an analogous one for local notions. Furthermore, the extended stability notion,...

This paper studies a matching algorithm which is termed incomplete-information deferred acceptance (DA). We show that DA is finite and that it produces a stable market state. We also compare DA with algorithms in the literature, including the complete-information Gale-Shapley algorithm, the...

Bringing together the classic defense of liberty and democracy, the political economy of hierarchy, endogenous growth theory, and the new institutional economics on growth, we propose a new institutional theory that identifies democracy's unique advantage in prompting economic growth. We contend...

Bringing together the classic defense of liberty and democracy, the political economy of hierarchy, endogenous growth theory, and the new institutional economics on growth, we propose a new institutional theory that identifies democracy's unique advantage in prompting economic growth. We contend...

We model a decision maker who anticipates her preference to change in the future, and optimistically evaluates each menu according to the best choice that could possibly be made by her future self. We characterize this menu preference by axioms weak order, independence, semi-continuity,...

We introduce a new updating rule, the conditional maximum likelihood rule (CML) for updating ambiguous information. The CML formula replaces the likelihood term in Bayes’ rule with the maximal likelihood of the given signal conditional on the state. We show that CML satisfies a new axiom,...