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Uniqueness and Symmetry in Bargaining Theories of Justice
Philos Stud DOI 10.1007/s11098-013-0121-y Uniqueness and symmetry in bargaining theories of justice John Thrasher Ó Springer Science+Business Media Dordrecht 2013 Abstract For contractarians, justice is the result of a rational bargain. The goal is to show that the rules of justice are consistent with rationality. The two most important bargaining theories of justice are David Gauthier’s and those that use the Nash’s bargaining solution. I argue that both of these approaches are fatally undermined by their reliance on a symmetry condition. Symmetry is a substantive constraint, not an implication of rationality. I argue that using symmetry to generate uniqueness undermines the goal of bargaining theories of justice. Keywords David Gauthier Á John Nash Á John Harsanyi Á Thomas Schelling Á Bargaining Á Symmetry Throughout the last century and into this one, many philosophers modeled justice as a bargaining problem between rational agents. Even those who did not explicitly use a bargaining problem as their model, most notably Rawls, incorporated many of the concepts and techniques from bargaining theories into their understanding of what a theory of justice should look like. This allowed them to use the powerful tools of game theory to justify their various theories of distributive justice. The debates between partisans of different theories of distributive justice has tended to be over the respective benefits of each particular bargaining solution and whether or not the solution to the bargaining problem matches our pre-theoretical intuitions about justice. There is, however, a more serious problem that has effectively been ignored since economists originally J. -
Slope Takers in Anonymous Markets"
Slope Takers in Anonymous Markets Marek Weretka,y 29th May 2011 Abstract In this paper, we study interactions among large agents trading in anonymous markets. In such markets, traders have no information about other traders’payo¤s, identities or even submitted orders. To trade optimally, each trader estimates his own price impact from the available data on past prices as well as his own trades and acts optimally, given such a simple (residual supply) representation of the residual mar- ket. We show that in a Walrasian auction, which is known to have a multiplicity of Nash equilibria that if all traders independently estimate and re-estimate price im- pacts, market interactions converge to a particular Nash equilibrium. Consequently, anonymity and learning argument jointly provide a natural selection argument for the Nash equilibrium in a Walrasian auction. We then study the properties of such focal equilibrium. JEL clasi…cation: D43, D52, L13, L14 Keywords: Walrasian Auction, Anonymous Thin Markets, Price impacts 1 Introduction Many markets, e.g., markets for …nancial assets are anonymous. In such markets inform- ation of each individual trader is restricted to own trades and commonly observed market price. Traders have no information about other traders’payo¤s, identities or submitted or- ders. The archetypical framework to study anonymous markets, a competitive equilibrium I would like to thank Paul Klemperer, Margaret Meyer, Peyton Young and especially Marzena Rostek for helpful conversations. yUniversity of Wisconsin-Madison, Department of Economics, 1180 Observatory Drive, Madison, WI 53706. E-mail: [email protected]. 1 assumes the following preconditions 1) all traders freely and optimally adjust traded quant- ities to prices; 2) trade occurs in centralized anonymous markets; and 3) individual traders are negligible and hence treat prices parametrically. -
Viable Nash Equilibria: Formation and Defection (Feb 2020)
VIABLE NASH EQUILIBRIA: FORMATION AND DEFECTION (FEB 2020) EHUD KALAI In memory of John Nash Abstract. To be credible, economic analysis should restrict itself to the use of only those Nash equilibria that are viable. To assess the viability of an equilibrium , I study simple dual indices: a formation index, F (), that speci…es the number of loyalists needed to form ; and a defection index, D(), that speci…es the number of defectors that can sustain. Surprisingly, these simple indices (1) predict the performance of Nash equilibria in social systems and lab experiments, and (2) uncover new prop- erties of Nash equilibria and stability issues that have so far eluded game theory re…nements. JEL Classi…cation Codes: C0, C7, D5, D9. 1. Overview Current economic analysis often relies on the notion of a Nash equilibrium. Yet there are mixed opinions about the viability of this notion. On the one hand, many equilibria, referred to as viable in this paper, play critical roles in functioning social systems and perform well in lab and …eld experiments. Date: March 9, 2018, this version Feb 24, 2020. Key words and phrases. Normal form games, Nash equilibrium, Stability, Fault tolerance, Behavioral Economics. The author thanks the following people for helpful conversations: Nemanja Antic, Sunil Chopra, Vince Crawford, K…r Eliaz, Drew Fudenberg, Ronen Gradwohl, Yingni Guo, Adam Kalai, Fern Kalai, Martin Lariviere, Eric Maskin, Rosemarie Nagel, Andy Postlewaite, Larry Samuelson, David Schmeidler, James Schummer, Eran Shmaya, Joel Sobel, and Peyton Young; and seminar participants at the universities of the Basque Country, Oxford, Tel Aviv, Yale, Stanford, Berkeley, Stony Brook, Bar Ilan, the Technion, and the Hebrew University. -
DP Cover1512 Kalai.Cdr
Discussion Paper #1512 June 16, 2010 A A Cooperative Value for Bayesian Games Key words: cooperative game theory, non- cooperative game theory, bargaining, min-max value JEL classification: C70, C71, C72, C78 Adam Kalai Microsoft Research Ehud Kalai Northwestern University www.kellogg.northwestern.edu/research/math everone Hall Evanston, IL 60208-2014 US CMS-EMS oad 580 L The Center for Mathematical Studies in Economics & Management Sciences Northwestern University 2001 Sheridan R A COOPERATIVE VALUE FOR BAYESIAN GAMES ADAM TAUMAN KALAI∗ AND EHUD KALAIy;x Abstract. Selfish, strategic players may benefit from cooperation, provided they reach agreement. It is therefore important to construct mechanisms that facilitate such cooperation, especially in the case of asymmetric private information. The two major issues are: (1) singling out a fair and efficient outcome among the many individually rational possibilities in a strategic game, and (2) establishing a play protocol under which strategic players may achieve this outcome. The paper presents a general solution for two-person Bayesian games with monetary payoffs, under a strong revealed-payoff assumption. The proposed solution builds upon earlier concepts in game theory. It coincides with the von Neumann minmax value on the class of zero sum games and with the major solution concepts to the Nash Bargaining Problem. Moreover, the solution is based on a simple decomposition of every game into cooperative and competitive components, which is easy to compute. 1. Introduction Selfish players in strategic games benefit from cooperation, provided they come to mutually beneficial agreements. In the case of asymmetric private information, the benefits may be even greater, but avoiding strategic manipulations is more subtle. -
The Neumann Lecture (By Prof. Glenn C. Loury, Brown University)*
The Neumann Lecture (by Prof. Glenn C. Loury, Brown University)* My lecture tonight will be about race and racial inequality in the United States. I will try to give you some idea of what I think I'm contributing to the study of this subject in my work. In order to do that I need to give some background, to create something of an intellectual context into which my work will fit. Indeed, I will begin by describing some aspects of the work of last year's von Neumann laureate – the renowned economist Gary S. Becker of the University of Chicago, who has addressed himself over the past few decades to related questions. Then I will try to convince you that my ideas extend and amplify and deepen Becker’s work. But I don't think it will be enough just to talk about my ideas. I think one also has to talk about what might be done about this situation – about the politics and the morality, the social morality, the social ethics that are raised by this question of social division, of “race,” within a society. I am aware that here in Hungary you know something about this question. I spent some time just today with the Minister of Equal Opportunities and her staff discussing the Roma question, and nationalities questions, and inequality questions that pertain to Hungary. I don't know very much about those things and I won't be speaking about those things directly here. I will be talking about the United States, which is the case that I know best. -
Partisan Gerrymandering and the Construction of American Democracy
0/-*/&4637&: *ODPMMBCPSBUJPOXJUI6OHMVFJU XFIBWFTFUVQBTVSWFZ POMZUFORVFTUJPOT UP MFBSONPSFBCPVUIPXPQFOBDDFTTFCPPLTBSFEJTDPWFSFEBOEVTFE 8FSFBMMZWBMVFZPVSQBSUJDJQBUJPOQMFBTFUBLFQBSU $-*$,)&3& "OFMFDUSPOJDWFSTJPOPGUIJTCPPLJTGSFFMZBWBJMBCMF UIBOLTUP UIFTVQQPSUPGMJCSBSJFTXPSLJOHXJUI,OPXMFEHF6OMBUDIFE ,6JTBDPMMBCPSBUJWFJOJUJBUJWFEFTJHOFEUPNBLFIJHIRVBMJUZ CPPLT0QFO"DDFTTGPSUIFQVCMJDHPPE Partisan Gerrymandering and the Construction of American Democracy In Partisan Gerrymandering and the Construction of American Democracy, Erik J. Engstrom offers an important, historically grounded perspective on the stakes of congressional redistricting by evaluating the impact of gerrymandering on elections and on party control of the U.S. national government from 1789 through the reapportionment revolution of the 1960s. In this era before the courts supervised redistricting, state parties enjoyed wide discretion with regard to the timing and structure of their districting choices. Although Congress occasionally added language to federal- apportionment acts requiring equally populous districts, there is little evidence this legislation was enforced. Essentially, states could redistrict largely whenever and however they wanted, and so, not surpris- ingly, political considerations dominated the process. Engstrom employs the abundant cross- sectional and temporal varia- tion in redistricting plans and their electoral results from all the states— throughout U.S. history— in order to investigate the causes and con- sequences of partisan redistricting. His analysis -
Large Games: Structural Robustness
1 Large games: structural robustness Ehud Kalai Northwestern University Forthcoming in The New Palgrave Dictionary of Economics , 2 nd edition, Palgrave Macmillan ABSTRACT In simultaneous-move Bayesian games with many semi-anonymous players all the equilibria are structurally robust. The equilibria survive under structural alterations of the rules of the game and its information structure, even when the game is embedded in bigger games. Structural robustness implies ex-post Nash condition s and a stronger condition of information proofness. It also implies fast learning, self-purification and strong rational expectations in market games. Structurally robust equilibria may be used to model games with highly unspecified structures, such as games played on the web. 0. Background on large games Earlier literature on large (many players) cooperative games is surveyed in Aumann and Shapley (1974). For large strategic games, see Schmeidler (1973) and the follow-up literature on the purification of Nash equilibria. There is also substantial literature on large games with special structures, for example large auctions as reported in Rustichini, Satterthwaite, and Williams (1994). Unlike the above, this survey concentrates on the structural robustness of (general) Bayesian games with many semi-anonymous players, as developed in Kalai (2004, 2005). (For additional notions of robustness in game theory, see Bergemann and Morris, 2005). 1. Main message and examples In simultaneous-move Bayesian games with many semi-anonymous players, all Nash equilibria are structurally robust. The equilibria survive under structural alterations that 2 relax the simultaneous-play assumptions, and permit information transmission, revisions of choices, communication, commitments, delegation, and more. Large economic and political systems and distributive systems such as the Web are examples of environments that give rise to such games. -
Curriculum Vitae 03/97
CURRICULUM VITAE April 2006 Ehud Kalai, Ph.D. Home Office 1110 N. Lake Shore Dr., Apt. 23S Department of Managerial Economics and Decision Sciences Chicago, IL 60611 Kellogg School of Management Phone: (847) 571-1097 Northwestern University, Evanston, Illinois, 60208 Fax: (312) 482-9772 (847) 491-7017; fax (847) 467-3646 e-mail: [email protected] Born, December 7, 1942, Tel Aviv, Israel Education Cornell University, Ithaca, New York: Ph.D. in Mathematics (1972); MS in Statistics (1971). University of California, Berkeley: A.B. in Mathematics (1967). Permanent Academic Positions 09/75-present Kellogg School of Management, Northwestern University: Visiting Assistant Professor (9/75-9/76), Associate Professor (9/76-9/78), Professor (9/78-9/82), The Charles E. Morrison Professor of Decision Sciences (9/82-9/2001); The James J. O'Connor Distinguished Professor of Decision and Game Sciences (9/2001 - present). 03/90-present Professor of Mathematics (courtesy), Department of Mathematics, CAS, Northwestern University. 10/72-9/75 Assistant Professor, Department of Statistics, Tel Aviv University. Editorial Positions Editor and founder, Games and Economic Behavior, Academic Press, 1988- . Member of the Editorial Board of the International Journal of Game Theory, Physica Verlag, 1984- . Member of the Editorial Board of Mathematical Social Sciences, North-Holland, 1980-1993. Associate Editor, The Journal of Economic Theory, Academic Press, Inc., 1980-1988. Other Positions President of the Game Theory Society, 2003-2006 Co Founder and Executive Vice President of the Game Theory Society, 1998-2003 Director of the Kellogg Center for Strategic Decision-Making, 1995- . Founding organizer of the Nancy L. -
Nancy L. Stokey
March 2021 NANCY L. STOKEY Office Address Home Address Kenneth C. Griffin Department of Economics 320 W. Oakdale Ave., #1903 University of Chicago Chicago, IL 60657 1126 East 59th Street Chicago, IL 60637 Telephone: 773-702-0915 Telephone: 773-477-9640 Fax: 773-702-8490 E-mail: nstokey[at]uchicago.edu Education Doctor of Philosophy in Economics, Harvard University, 1978. Bachelor of Arts in Economics, University of Pennsylvania, 1972. Professional Experience Distinguished Service Professor, 2004-present, University of Chicago; Frederick Henry Prince Professor of Economics, 1997-2004; Professor of Economics, 1990-1996. Visiting Scholar of the Research Department, Federal Reserve Bank of Minneapolis, Fall 2000, Fall 2001, Fall 2002, Fall 2003, Fall 2009, Fall 2010, Fall 2011, Fall 2013, Fall 2018. Harold L. Stuart Professor of Managerial Economics, 1988-90, Department of Managerial Economics and Decision Sciences, Kellogg Graduate School of Management, Northwestern University; Department Chairman, 1987-89; Professor, 1983-87; Associate Professor, 1982-83; Assistant Professor, 1978-82. Visiting Professor of Economics, Department of Economics, University of Chicago, 1983-84. Visiting Professor of Economics, Department of Economics, University of Minnesota, Spring 1983. Visiting Lecturer on Economics, Department of Economics, Harvard University, Fall 1982. Professional Activities and Awards President, Society for the Advancement of Economic Theory (SAET), January 1 – December 31, 2021. American Academy of Arts and Sciences Class III, Section 2 (Economics) Membership Panel, 2019-20. American Academy of Arts and Sciences Class III, Section 2 (Economics) Membership Panel, 2018-19. CME Group-MSRI Prize Committee, 2018-19. Plenary Speaker, Society for Economic Dynamics, Mexico City, June, 2018. Plenary Speaker, Tsinghua Workshop in Macroeconomics, Beijing, June, 2018. -
Large Robust Games 1. Introduction and Examples
LARGE ROBUST GAMES EHUD KALAI Abstract. With many semi-anonymous players, the equilibria of simultaneous- move games are extensively robust. This means that the equilibria survive even if the simultaneous-play assumption is relaxed to allow for a large variety of ex- tensive modifications. Such modification include sequential play with partial and differential revelation of information, commitments and multiple revisions of choices, cheap talk announcements and more. 1. INTRODUCTION AND EXAMPLES 1.1. INTRODUCTION. Games with many players is an old topic in economics and in cooperative game theory. Prominent theorists, including Arrow, Aumann, Debreu, Hildenbrand, Scarf, Shapley, and Shubik, have shown that in large cooper- ative games major modeling difficulties disappear. For example, solution concepts such as the core, competitive equilibrium, and the Shapley value, which in general predict different outcomes for the same game, predict the same outcome when the number of players is large. As a special case, this coincidence offers a cooperative- coalitional foundation for competitive equilibria. For a general survey, see Aumann and Shapley (1974). Less is known about general non-cooperative strategic games with many players. An early study of this subject was Schmeidler (1973), who shows the existence of pure-strategy Nash equilibria in normal-form games with a continuum of anony- mous players. More recently there have been many studies of specific large economic games; see, for example, Mailath and Postlewaite (1990) on bargaining, Rustichini, Sat- terthwaite, and Williams (1994) and Pesendorfer and Swinkels (1997) on auctions, Date:February5,2004. Key words and phrases. anonymous games, Nash equilibrium, Bayesian equilibrium, purifica- tion, robust equilibrium, ex-post Nash, rational expectations equilibrium. -
Schooling in Capitalist America Revisited Samuel Bowles And
Schooling in Capitalist America Revisited Samuel Bowles and Herbert Gintis∗ November 8, 2001 The project that eventually resulted in the publication of Schooling in Capitalist America (1976) began in 1968, stimulated by the then raging academic debates and social conflicts about the structure and purposes of education. We were then, and remain, hopeful that education can contribute to a more productive economy and a more equitable sharing of its benefits and burdens, as well as a society in which all are maximally free to pursue their own ends unimpeded by prejudice, lack of opportunity for learning, or material want. Our distress at how woefully the U.S. educational system was then failing these objectives sparked our initial collaboration. Its continuing failure has prompted our recent return to the subject. The three basic propositions of the book deal with human development, inequal- ity, and social change. Concerning human development, we showed that while cognitive skills are important in the economy and in predicting individual economic success, the con- tribution of schooling to individual economic success could only partly be explained by the cognitive development fostered in schools. We advanced the position that schools prepare people for adult work rules, by socializing people to function well, and without complaint, in the hierarchical structure of the modern corporation. Schools accomplish this by what we called the correspondence principle, namely, by structuring social interactions and individual rewards to replicate the environ- ment of the workplace. We thus focused attention not on the explicit curriculum but on the socialization implied by the structure of schooling. -
CURRICULUM VITAE of OLIVER E. WILLIAMSON May 2013 PRESENT
CURRICULUM VITAE OF OLIVER E. WILLIAMSON May 2013 PRESENT POSITION Professor of the Graduate School and Edgar F. Kaiser Professor Emeritus of Business, Economics and Law, University of California, Berkeley. EDUCATION S.B., Massachusetts Institute of Technology, 1955 M.B.A., Stanford University, 1960 Ph.D., Carnegie-Mellon University (Economics), 1963 AWARDS, PRIZES, AND FELLOWSHIPS Honorary Societies Fellow, The Berkeley Fellows, 2013 Nobel Laureate in the Economic Sciences, 2009. Fellow, American Academy of Political and Social Science, 1997. Member, National Academy of Sciences, 1995. Fellow, American Academy of Arts and Sciences, 1983. Fellow, Econometrics Society, 1977. 1 Prizes Grande Cruz, awarded by the Congress of Peru, 2011. Nobel Laureate in Economic Sciences, 2009. Horst Claus Recktenwald Prize in Economics, 2004. 1983 Prize for Distinguished Scholarship in Law and Economics, Miami University. Ford Foundation Dissertation Prize, 1963. Honorary Degrees Docteur Honoris Causa, University of Paris-Dauphine, 2012. Honorary Doctor of Economics and Organization, Carnegie-Mellon University, 2011. Honorary Professor, Tsinghua University, SEM, 2010. Doctoris Honoris Causa in Economics, Nice University, 2005. Doctoris Honoris Causa in Economics, Valencia University, 2004. Doctoris Honoris Causa in Economics, University of Chile, 2000. Honorary Doctorate in Economics and Business Administration, Copenhagen Business School, 2000. Doctoris Honoris Causa, Groupe HEC (Paris), 1997. Doctoris Honoris Causa in Business Administration, St. Petersburg University, Russia, 1997. Doctoris Honoris Causa in Economics, Turku School of Economics and Business Administration, 1995. Doctoris Honoris Causa in Economic Science, Groningen University, 1989. Doctoris Honoris Causa in Economic Science, Hochschule St. Gallen, 1987. Oeconomiae Doctorem Honoris Causa, Ph.D., Norwegian School of Economics and Business Administration, Jubilee Celebration, 1986.