I estimate a simultaneous discrete game with incomplete information where players' private information are only required to be median independent of observed states and can be correlated with observable states. This median restriction is weaker than other assumptions on players' private...

This paper surveys cooperative game theory when players have incomplete or asymmetric information, especially when the TU and NTU games are derived from economic models. First some results relating balanced games and markets are summarized, including theorems guaranteeing that the core is...

Most DSGE models and methods make inappropriate asymmetric information assumptions. They assume that all economic agents have full access to measurement of all variables and past shocks, whereas the econometricians have no access to this. An alternative assumption is that there is symmetry, in...

Can we reconcile the predictions of the altruism model of the family with the evidence on intervivos transfers in the US? This paper expands the altruism model by introducing effort of the child and by relaxing the assumption of perfect information of the parent about the labor market...

Uncertainty about capabilities, intent, or resolve has long been linked to war. More recently, the bargaining model of war has established uncertainty, also referred to as asymmetric information, as one of the two major causes of costly conflict, the other being the dynamics of commitment in...

Abstract Public procurement data sets usually lack detailed data that are needed to implement existing methods of collusion detection. We design a method to identify and test for bid rigging in procurement auctions using limited information. The method can be applied to limited data sets using...

This paper investigates robust information transmission between a sender and a receiver in the Crawford and Sobel (1982) model. We characterize behavior that remains equilibrium behavior independently of the form of a small communication cost. Under standard conditions, we find that an...

Many transactions in the marketplace rely on hard (or verifiable) information about the underlying value of the intended exchange, typically through certification--- housing, diamonds, bonds being cases in point. What is the class of Pareto efficient certifications for such scenarios? This paper...

There are two common views of pork barrel spending. One is that pork barrel spending benefits special interests at the expense of social welfare, hence antithetical to responsible policymaking, especially in times of crisis. An alternative is that pork “greases the legislative wheels” making...

A central result in the economic theory of liability is that, if an injurer's liability equals the victim's loss, then either the rule of strict liability or the rule of negligence can induce the injurer to behave properly. However, for this result to hold, the injurer must know the victim's...