We analyze bubbles and crashes in a model in which some investors are partially sophisticated. While the expectations of such investors are endogenously determined in equilibrium, these are based on a coarse understanding of the market dynamics. We highlight how such investors may endogenously...

Successive decentralized policy makers must decide whether to implement an affirmative action policy aimed at improving the performance distribution of future generations of a targeted group. Employers do not observe district by district whether workers benefited from affirmative action, but...

In Section 1 of this online appendix, we briefly suggest how our model can also accommodate the case when affirmative action takes the form of a biased promotion process. In Section 2, we present a generalized model in which we allow for strategic behavior by workers (Section 2.1), for...

The authors determine a contest with multiple (not necessarily equal) prizes. Contestants have private information about an ability parameter that affects their costs of bidding.

We characterize the set of extreme points of monotonic functions that are either majorized by a given function f or themselves majorize f and show that these extreme points play a crucial role in many economic design problems. Our main results show that each extreme point is uniquely...