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Mathias Dewatripont, and Jean Tirole

vol. 132, n. 8, 2024, pp. 2655–2694

Scholars and civil society have argued that competition erodes supplier morality. This paper establishes a robust irrelevance result, whereby intense market competition does not crowd out consequentialist ethics; it thereby issues a strong warning against the wholesale moral condemnation of markets...

Renato Gomes, and Alessandro Pavan

vol. 55 (2), n. Summer, 2024, pp. 230–265

We introduce a model of (platform-mediated) many-to-many matching in which agents' preferences are both vertically and horizontally differentiated. We first show how the model can be used to derive the profit-maximizing matching plans under customized pricing. We then investigate the implications...

Jonathan Elliott, Georges Vivien Houngbonon, Marc Ivaldi, and Paul Scott

2024

We develop a model of competition in prices and infrastructure among mobile network operators. Although consolidation increases market power, it can lead to more efficient data transmission due to economies of scale, which we derive from physical principles. After estimating our model with French...

David Martimort, Pierre Fleckinger, and Nicolas Roux

vol. 62, n. 4, December 2024, p. 1589–1646

What is the most efficient way of designing incentives in an organization? Over the past five decades, agency theory has provided various answers to this crucial question. This line of research suggests that, depending on the organizational context, the optimal approach to providing incentives may...

Arianna Dalzero, Bret A. Beheim, Hillard Kaplan, Jonathan Stieglitz, Paul L. Hooper, Cody Ross, Michael Gurven, and Dieter Lukas

vol. 6, n. e18, 2024

Although still prevalent in many human societies, the practice of cousin marriage has precipitously declined in populations undergoing rapid demographic and socioeconomic change. However, it is still unclear whether changes in the structure of the marriage pool or changes in the fitness-relevant...

Francesca Barigozzi, and Helmuth Cremer

vol. 144, 2024, pp. 250–283

We study how workers’ concern for coworkers’ ability (CfCA) affects competition in the labor market. Two firms offer nonlinear contracts to a unit mass of prospective workers. Firms may differ in their marginal productivity, while workers are heterogeneous in their ability (high or low) and their...

Thierry Magnac

vol. 75, n. 1, 2024, pp. 11–29

We review a tractable model of human capital investments that can accommodate lots of heterogeneity and we investigate its compatibility with some job search and equilibrium wage models that have been proposed in the literature. We show that the log wage equation derived from the combination of...

Daniel L. Chen, Jiafeng Chen, and Gregory Lewis

2024, forthcoming

We provide some simple theoretical results that justify incorporating machinelearning in a standard linear instrumental variable setting, prevalent in empiri-cal research in economics. Machine learning techniques, combined with sample-splitting, extract nonlinear variation in the instrument that...

Marcel Boyer, and Maria Kouyoumijian

2024, 200 pages, forthcoming

Malin Arve, and David Martimort

n. rdae106, November 2024

We consider a procurement auction for the provision of a basic service to which an add-on must later be appended. Potential providers are symmetric, have private information on their cost for the basic service and the winning firm must also implement the add-on. To finance value-enhancing...