Beginning with Mirrlees, the optimal taxation literature has generally focused on economies where individuals are differentiated by only their productivity. In this pa- per we examine models with discrete types where individuals are differentiated by two or more characteristics. For example, we...

We study computational aspects of moral-hazard problems. We consider deterministic contracts as well as contracts with action and/or compensation lotteries, and formulate each case as a mathematical program with equilibrium constraints (MPEC). We investigate and compare solution properties of...

This paper uses an asymptotically valid expansion to derive explicitly agent's individual demand schedules and then the equilibrium allocations in options. Agents derive financial and non-tradeable income over time; they can only partially offset the latter using bonds and stocks and the option...

It is often argued that incumbent firms may deter entry by preemptive investment in new goods. We show that these conclusions are reserved when multiproduct incumbent firms may exit in response to entry. Once entrants are in an industry, an incumbent will often want to withdraw some goods to...

Using the author's own experiences, this chapter shows how agent-based modeling (ABM) can address research questions common to many disciplines, facilitate interdisciplinary collaboration, provide a useful multidisciplinary tool when the math is intractable, and reveal unity across disciplines....

This chapter presents an overview of the existing learning models in the economic literature. Furthermore, it discusses the choice of models that should be used under various circumstances and how adequate learning models can be chosen in simulation approaches. It gives advice for using the many...

Computer automation has the potential, just starting to be realized, of transforming the design and operation of markets, and the behaviors of agents trading in them. We discuss the possibilities for automating markets, presenting a broad conceptual framework covering resource allocation as well...

This chapter treats a variety of epistemological issues surrounding generative explanation in the social sciences, and discusses the role of agent-based computational models in generative social science.