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Outputs (21)

Aggregating Inconclusive Data Sets (2024)
Journal Article
Gayer, G., Lehrer, E., & Persitz, D. (2024). Aggregating Inconclusive Data Sets. Games and Economic Behavior, 146, 77-90. https://doi.org/10.1016/j.geb.2024.04.011

An administrator is provided with data collected by several practitioners. These data may include inconclusive observations. The administrator is required to form a frequency distribution on the states of nature that would be approved by external aud... Read More about Aggregating Inconclusive Data Sets.

Weighted Utility and Optimism/Pessimism: A Decision-Theoretic Foundation of Various Stochastic Dominance Orders (2024)
Journal Article
Wang, T., & Lehrer, E. (2024). Weighted Utility and Optimism/Pessimism: A Decision-Theoretic Foundation of Various Stochastic Dominance Orders. American Economic Journal: Microeconomics, 16(1), 210-223. https://doi.org/10.1257/mic.20220350

We show that a probability distribution likelihood-ratio dominates another distribution if and only if, for every weighted utility function, the former is preferred over the latter. Likewise, a probability distribution hazard-rate (or reverse hazard... Read More about Weighted Utility and Optimism/Pessimism: A Decision-Theoretic Foundation of Various Stochastic Dominance Orders.

The Value of Information in Stopping Problems (2023)
Journal Article
Lehrer, E., & Wang, T. (2023). The Value of Information in Stopping Problems. Economic Theory, https://doi.org/10.1007/s00199-023-01543-8

We consider stopping problems in which a decision maker (DM) faces an unknown state of nature and decides sequentially whether to stop and take an irreversible action, or pay a fee and obtain additional information. We discuss the value and quality o... Read More about The Value of Information in Stopping Problems.

Markovian Persuasion (2023)
Journal Article
Lehrer, E., & Shaiderman, D. (in press). Markovian Persuasion. Theoretical Economics,

In the classical Bayesian persuasion model an informed player and an uninformed one engage in a static interaction. The informed player, the sender, knows the state of nature, while the uninformed one, the receiver, does not. The informed player part... Read More about Markovian Persuasion.

Monologues, dialogues, and common priors (2022)
Journal Article
Di Tillio, A., Lehrer, E., & Samet, D. (2022). Monologues, dialogues, and common priors. Theoretical Economics, 17(2), 587-615. https://doi.org/10.3982/te4508

The main purpose of this paper is to provide a simple criterion enabling to conclude that two agents do not share a common prior. The criterion is simple, as it does not require information about the agents' knowledge and beliefs, but rather only the... Read More about Monologues, dialogues, and common priors.

Screening Dominance: A Comparison of Noisy Signals (2022)
Journal Article
Lagziel, D., & Lehrer, E. (2022). Screening Dominance: A Comparison of Noisy Signals. American Economic Journal: Microeconomics, 14(4), 1-24. https://doi.org/10.1257/mic.20200284

This paper studies the impact of noisy signals on screening processes. It deals with a decision problem in which a decision-maker screens a set of elements based on noisy unbiased evaluations. Given that the decision-maker uses threshold strategies,... Read More about Screening Dominance: A Comparison of Noisy Signals.

Subjective utilitarianism: Individual decisions in a social context (2020)
Journal Article
Alon, S., & Lehrer, E. (2020). Subjective utilitarianism: Individual decisions in a social context. Journal of Economic Theory, 190, Article 105108. https://doi.org/10.1016/j.jet.2020.105108

Individual decisions are often subjectively affected by other-regarding considerations. We model a decision maker influenced by a grand group of significant others. Each sub-group of significant others is a possible social context, and the decision m... Read More about Subjective utilitarianism: Individual decisions in a social context.

Allocation in multi-agenda disputes: A set-valued games approach (2020)
Journal Article
Lehrer, E., & Teper, R. (2020). Allocation in multi-agenda disputes: A set-valued games approach. Games and Economic Behavior, 122, 440-452. https://doi.org/10.1016/j.geb.2020.04.008

We study allocation problems when agents negotiate across different agendas. Unlike existing papers on multi-agenda disputes, we consider environments in which resources are constrained and investing (time or effort) in one agenda reduces the ability... Read More about Allocation in multi-agenda disputes: A set-valued games approach.

Transferable deposits as a screening mechanism (2020)
Journal Article
Lagziel, D., & Lehrer, E. (2021). Transferable deposits as a screening mechanism. Economic Theory, 71(2), 483-504. https://doi.org/10.1007/s00199-020-01264-2

We design incentive schemes for portfolio managers that screen low-skill managers: only the best portfolio managers, in terms of expected payoffs, agree to participate in a single-period investment. The results hold in general financial markets, wher... Read More about Transferable deposits as a screening mechanism.

A Bias of Screening (2019)
Journal Article
Lagziel, D., & Lehrer, E. (2019). A Bias of Screening. American Economic Review, 1(3), 343-356. https://doi.org/10.1257/aeri.20180578

This paper deals with the issue of screening. It focuses on a decision maker who, based on noisy unbiased assessments, screens elements from a general set. Our analysis shows that stricter screening not only reduces the number of accepted eleme... Read More about A Bias of Screening.

Competitive equilibrium as a bargaining solution: An axiomatic approach (2019)
Journal Article
Alon, S., & Lehrer, E. (2019). Competitive equilibrium as a bargaining solution: An axiomatic approach. Games and Economic Behavior, 118, 60-71. https://doi.org/10.1016/j.geb.2019.08.006

The paper introduces an axiomatic characterization of a solution to bargaining problems. Bargaining problems are specified by: (a) the preference relations of the bargaining parties (b) resources that are the subject of bargaining, and (c) a pre-spec... Read More about Competitive equilibrium as a bargaining solution: An axiomatic approach.

The effect of interest rates on consumption in an income fluctuation problem (2018)
Journal Article
Lehrer, E., & Light, B. (2018). The effect of interest rates on consumption in an income fluctuation problem. Journal of Economic Dynamics and Control, 94, 63-71. https://doi.org/10.1016/j.jedc.2018.07.004

We examine the effect of a change in interest rates on an agent’s consumption and savings decisions when her income is fluctuating. In each period, a long-lived agent decides how much to save (i.e., invest in a risky bond) and how much to consume whi... Read More about The effect of interest rates on consumption in an income fluctuation problem.

Reward schemes (2017)
Journal Article
Lagziel, D., & Lehrer, E. (2018). Reward schemes. Games and Economic Behavior, 107, 21-40. https://doi.org/10.1016/j.geb.2017.10.019

An investor has some funds invested through portfolio managers. By the end of the year, she reallocates the funds among these managers according to the managers' performance. While the investor tries to maximize her subjective utility (that depends o... Read More about Reward schemes.