Theoretical Economics

econ.TH

Contract theory, game theory, mechanism design, and social choice.

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Interim Reviews Create Incentives Beyond Terminal Pay

A dynamic contracting model turns future assignments and career opportunities into performance-contingent rewards when cash compensation cannot do the job alone.

Sep 13, 20265 min2609.07871

Large Sender Pools Require Punishing Biased Consensus

An incentive-compatibility-in-the-large characterization turns a high-dimensional reporting problem into a one-dimensional acceptance rule with deliberate surplus burning.

Sep 8, 20265 min2507.17609

Three Prompt Traits Match Economic Game Behavior

LLM prompts encoding risk aversion, strategic sophistication, and trust reproduce aggregate choices across ten economic game roles and transfer to held-out games.

Sep 1, 20265 min2608.18265

Silent War of Attrition Maximizes Targeted-Loss Exposure

A linear-program dual shows that assigning revenue-equivalent payments to losing states reaches the highest stress-test exposure for every bidder count $n \geq 2$.

Aug 22, 20265 min2607.29518

Copyright Extremes Undercut AI Training Markets

A Stackelberg and dynamic training model identifies two market failures and a collective intermediary that can restore efficient creation incentives.

Jul 28, 20265 min2606.12260

Stable Matching Looks Inefficient in Large Random Markets

A random-market proof links Deferred Acceptance to a giant envy component, implying Pareto improvements for almost every student asymptotically.

Jul 28, 20265 min2407.19831

Ocean Heat Model Reframes Greenhouse Gas Cost Estimates

OPTiMEM ties weather-damage projections to ocean heat content and turns carbon pricing into discount-rate phase spaces rather than single SCC values.

Jul 28, 20265 min2602.03009

Bayesian Costs Complicate Price Discrimination but Keep It Computable

A discounted-flow polytope over reduced fragments yields polynomial-time optimization of any linear seller-buyer welfare objective.

Jul 28, 20265 min2607.12615

Expectiles Reframe Disappointment Aversion in Savage Choice

New axioms connect Gul’s model to asymmetric least squares, yielding explicit representations, elicitation formulas, and temporal-difference learning foundations.

Jul 28, 20264 min2508.05541

Cosine Similarity Measures Agreement in Signal Interpretation

A cone-inclusion order over pairs of subjective models yields a prior-independent comparison and uniquely selects cosine similarity under rotation invariance.

Jul 13, 20264 min2607.05558