"Structural Econometrics with Discrete Outcomes" abstract Discrete outcomes are ubiquitous in econometrics. Much information about human behaviour in response to economic stimuli and motivations is provided by data recording variously: choices amongst discrete, ordered or unordered alternatives, attitudes, preferences and strengths of response recorded on ordinal scales, counts of occurrences of events, and so forth.…

"Efficient responses to targeted cash transfers"

"How Do Voters Respond to Information? Evidence from a Randomized Campaign"

"Efficiency in Games with Markovian Private Information" (joint with Juan Escobar) abstract We study repeated Bayesian n-player games in which the players' privately known types evolve according to an irreducible Markov chain, type transitions are independent across players, and players have private values. Our main result shows that, with communication, any Pareto-efficient payoff vector above a minmax value can…

"Estimation of a Roy/Search/Compensating Di fferentials Model of the LaborMarket"

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"Reputation with Analogical Reasoning" Abstract We consider a repeated interaction between a long-run player and a sequence of short-run players, in which the long-run player may either be rational or may be a mechanical type who plays the same (possibly mixed) action in every stage game. We depart from the classical model, exemplied by Fudenberg…

"Backward integration, forward integration, and vertical foreclosure"

"Measuring Preferences and Predicting Outcomes"

"Machines and machinists: Capital-skill complementarity from an international trade perspective" Abstract We estimate the effect of imported machines on the wages of machine operators utilizing Hungarian linked employer-employee data. We infer exposure to imported machines from detailed trade statistics of the firm and the occupation description of the worker. We find that workers exposed to…

"A Definition of Unforeseen Contingencies" Abstract The paper proposes a choice-theoretic definition of unforeseen contingencies. It is proved that if preference admits a recursive utility representation all contingencies are necessarily foreseen. The paper proceeds axiomatically to develop a nonrecursive model of choice in which some events might be initially unforeseen. The process of updating implied…

"Non-Exclusive Competitionunder Adverse Selection" Abstract A seller of a divisible good faces several identical buyers. The quality of the good may be low or high, and is the seller's private information. The seller has strictly convex preferences that satisfy a single-crossing condition. Buyers compete by posting menus of non-exclusive contracts, so that the seller can…

"Efficiency in Repeated Two-Action Games with Local Monitoring" ASTRACT The paper discusses community enforcement in infinitely repeated two-action games with local monitoring. Each player interacts with and observes only a fixed set of partners, of whom he is privately informed. The main result shows that for generic beliefs efficiency can be sustained in a sequential equilibrium in which strategies are…

“Who is (More) Rational?” Abstract Revealed preference theory offers a criterion for decision-makingquality: if decisions are high quality then there exists a utility functionthat the choices maximize. We conduct a large-scale field experimentthat enables us to test for consistency with utility maximization. Wefind that high-income and high-education subjects display greater levels of consistency than low-income…

"Unobserved Heterogeneity in Matching Games"