In the context of partitional knowledge models, we prove that, in a monotonic model, any cycle equation can be obtained as the product of cycle equations corresponding to cycles of length two. Hence, if a model is monotonic, has …nite states, and players’posteriors satisfy all cycle equations corresponding to cycles of length two, then these posteriors are consistent (i.e., there is a common pr...

We propose a form of a lens corrector at the prime focus of a hyperboloidal mirror that provides a flat field of view up to 3◦ diameter at image quality D80 < 0.8 arcsec in integrated (0.32– 1.10 μm) light. The corrector consists of five lenses made of fused silica. Only spherical surfaces are used, so the system is capable of achieving better images, if necessary, by aspherizing the surfaces. ...

In this paper, we develop continuous-time methods for solving dynamic principal-agent problems in which the agent’s privately observed productivity shocks are persistent over time. We characterize the optimal contract as the solution to a system of ordinary differential equations and show that, under this contract, the agent’s utility converges to its lower bound—immiserization occurs. Unlike u...

A dynamic discrete time model is estimated in order to analyze the evolution of perceived risk around a hazardous waste site and its effect on property values. Residential property values are modeled as a function of housing attributes and perceived risk to health from a nearby hazardous waste site using an hedonic price framework. Perceived risk enters the model as a state equation, which incl...

The heavy chain IGHV1-69 germline gene exhibits a high level of polymorphism and shows biased use in protective antibody (Ab) responses to infections and vaccines. It is also highly expressed in several B cell malignancies and autoimmune diseases. G6 is an anti-idiotypic monoclonal Ab that selectively binds to IGHV1-69 heavy chain germline gene 51p1 alleles that have been implicated in these Ab...

The Relationship Between Economic Preferences and Psychological Personality Measures Although both economists and psychologists seek to identify determinants of heterogeneity in behavior, they use different concepts to capture them. In this review we first analyze the extent to which economic preferences and psychological concepts of personality – such as the Big Five and locus of control – are...

In this paper, we construct a universal type space for a class of possibility models by imposing topological restrictions on the players’ beliefs. Along the lines of Mertens and Zamir [International Journal of Game Theory, 14 (1985) 1] or Brandenburger and Dekel [Journal of Economic Theory 59 (1993) 189], we show that the space of all hierarchies of compact beliefs that satisfy common knowledge...

This paper introduces a novel approach to integrals with respect to capacities. Any random variable is decomposed as a combination of indicators. A pre-speci ed set of collections of events indicates which decompositions are allowed and which are not. Each allowable decomposition has a value determined by the capacity. The decomposition-integral of a random variable is de ned as the highest of ...

This paper introduces a model to analyze the role of the cost of information dissemination in large markets where firms have varying degrees of intrinsic efficiency reflected in their marginal costs. Firms enter a market and discover how efficient they are. Those firms with high enough efficiency stay, others exit. Remaining firms then compete to attract consumers by disseminating information a...

This paper examines under what circumstances the market-based compensation scheme is effective in inducing managers’ incentives. We combine the optimal contract theory with the market microstructure literature and endogenize both the optimal compensation scheme and the stock market equilibrium. We analytically show that the incentive pay works better in a more efficient (or more informative) st...