Contest theory is an area of game theory that studies environments in which agents make sunk investments in order to get a prize. These investments could be money, effort, time, etc. Contest theory is used to study a wide range of applications, like political contests, research and development, advertisement campaigns,...
This dissertation comprises three essays in distinct areas of economic theory, yet all are related to experimentation and learning. In the first chapter, I study how organizations assign tasks to identify the best candidate to promote among a pool of workers. Task allocation and workers’ motivation interact through the organization’s...
This dissertation contains two topics. The first topic focuses on how to use information design to minimize costs of implementing a policy that guarantees 100% passing rate of all participants by providing enough compensation for the their effort. The second topic explores an auction setting which involves financially distressed business...
This dissertation comprises three essays that study dynamic decisions under uncertainty--in particular, ambiguity. The first two chapters develop new decision models that emphasize the role of making statistical inferences in decisions. The third chapter highlights, in the context of persuasion, how different decision models can lead to distinct conclusions in...
This thesis revisits classic optimal tax theory, recognizing that most people live in multi-person households. We derive optimal tax schedules for married agents, seriously taking the distinction between interpersonal and interhousehold inequality. After showing how individual-oriented utilitarianism typically leads to a misalignment between the households’ and the government’s objectives, which...
This dissertation consists of three chapters on contract theory. In Chapter 1, ``Agency in Hierarchies: Middle Managers and Performance Evaluations'', I study the optimal joint design of incentives and performance rating scales in a principal-manager-worker hierarchy. The principal wants to motivate the manager and the worker to exert unobservable effort....
Chapter 1: Despite the rapid growth of passive ownership over the past 30 years, there is no consensus on how or why passive ownership affects stock price informativeness. This paper provides a new answer to this question by examining how passive ownership changes investors' incentives to acquire information. I develop...
This dissertation comprises three essays in distinct areas of economic theory. The first chapter is co-authored with Gregorio Curello. We identify a new and pervasive dynamic agency problem: that of incentivising the prompt disclosure of productive information. To study it, we introduce a model in which a technological breakthrough occurs...
In this dissertation I examine issues related to uncertainty and robustness in game theory. In Chapter 1 a strategic setting is analyzed where players face Knightian uncertainty about the strategic choices of their opponents. That is, in contrast to the usual Bayesian framework and in line with experimental evidence, players...
This dissertation presents research on the game theory of political power, both between and within nations. It first revisits a classical distinction between three different types of power or influence: information, rewards and threats. By presenting a binary-action Principal-Agent problem which incorporates the essential ingredients of all three types of...