Happening @ Michigan https://events.umich.edu/group/3555/rss RSS Feed for Happening @ Michigan Events at the University of Michigan. Multidimensional Screening with Rich Consumer Data (with Mira Frick and Yuhta Ishii) (March 29, 2024 2:30pm) https://events.umich.edu/event/118221 118221-21840664@events.umich.edu Event Begins: Friday, March 29, 2024 2:30pm
Location: Lorch Hall
Organized By: Economic Theory

We study multi-good sales by a seller who has access to rich data about a buyer’s valuations for the goods. Optimal mechanisms in such multi-dimensional screening problems are known to in general be complicated and not resemble mechanisms observed in practice. Thus, we instead analyze the optimal convergence rate of the seller’s revenue to the first-best revenue as the amount of data grows large. Our main result provides a rationale for a simple and widely used class of mechanisms—(pure) bundling—by showing that these mechanisms allow the seller to achieve the optimal convergence rate. In contrast, we find that another simple class of mechanisms—separate sales—yields a suboptimal convergence rate to the first-best and thus is outperformed by bundling whenever the seller has sufficiently precise information about consumers.

This talk is presented by the Economic Theory Seminar, sponsored by the Department of Economics with generous gifts given through the Mark Harms Fund and the Economics Strategic Fund.

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Workshop / Seminar Thu, 21 Mar 2024 09:36:11 -0400 2024-03-29T14:30:00-04:00 2024-03-29T15:50:00-04:00 Lorch Hall Economic Theory Workshop / Seminar Multidimensional Screening with Rich Consumer Data (with Mira Frick and Yuhta Ishii)
Intertemporal Hedging and Trade in Repeated Games with Recursive Utility (April 5, 2024 2:30pm) https://events.umich.edu/event/118222 118222-21840665@events.umich.edu Event Begins: Friday, April 5, 2024 2:30pm
Location: Lorch Hall
Organized By: Economic Theory

Two key features distinguish the general class of recursive preferences from the standard model of dynamic choice: (i) agents may care about the intertemporal distribution of risk, and (ii) their rates of time preference, rather than being fixed, may vary with the level of consumption. We investigate what these features imply in the context of a repeated strategic interaction. First, we show that opportunities for intertemporal trade may expand the set of feasible payoffs relative to that in a static interaction. Two distinct sources for such trade are identified: endogenous heterogeneity in the players’ rates of time preference and a hedging motive pertaining to the intertemporal distribution of risk. The set of equilibrium payoffs may on the other hand shrink drastically as many efficient outcomes become unsustainable no matter the level of patience. This “antifolk” result occurs when the players prefer stage outcomes to be positively correlated rather than independent across time. Intuitively, such preferences make it inefficient to offset short-term losses with future gains, while this is needed to ensure that security levels are met on path. We also establish a folk theorem: if security levels are met on path, such play can be sustained in a subgame perfect equilibrium provided that the players are sufficiently patient.

This talk is presented by the Economic Theory Seminar, sponsored by the Department of Economics with generous gifts given through the Mark Harms Fund and the Economics Strategic Fund.

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Workshop / Seminar Fri, 01 Mar 2024 09:11:04 -0500 2024-04-05T14:30:00-04:00 2024-04-05T15:50:00-04:00 Lorch Hall Economic Theory Workshop / Seminar Intertemporal Hedging and Trade in Repeated Games with Recursive Utility
Economic Theory Seminar- April 12 (April 12, 2024 2:30pm) https://events.umich.edu/event/118223 118223-21840667@events.umich.edu Event Begins: Friday, April 12, 2024 2:30pm
Location: Lorch Hall
Organized By: Economic Theory

This talk is presented by the Economic Theory Seminar, sponsored by the Department of Economics with generous gifts given through the Mark Harms Fund and the Economics Strategic Fund.

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Workshop / Seminar Tue, 06 Feb 2024 14:14:46 -0500 2024-04-12T14:30:00-04:00 2024-04-12T15:50:00-04:00 Lorch Hall Economic Theory Workshop / Seminar Economic Theory Seminar- April 12