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Andrew Rhodes, and Jidong Zhou
2026, forthcoming
Jean Tirole, and Roland Bénabou
2026, 59 pages, forthcoming
We analyze how private decisions and optimal public policies are shaped by personal and societal preferences, material incentives, and social norms. We show how honor and stigma interact with incentives and derive optimal taxation. We then analyze the expressive role of law as embodying society’s...
Sai Bravo-Melgarejo, and Carole Haritchabalet
A labeling system for green gases, such as green hydrogen and bio-methane, could enable retailers to leverage consumers’ willingness to pay for environmental quality while promoting the adoption of these cleaner alternatives. However, the significant cost gap between green and conventional gases...
Fabrice Collard, Frédéric Boissay, Jordi Galì, and Cristina Manea
Pierre Dubois, and Gökçe Gökkoca
Antimicrobial resistance (AMR) increases healthcare costs, hospital stays, and mortality. This study examines how AMR affects antibiotic prescribing for cystitis in France (2002–2019), using data from general practitioners. A decision model is developed to capture prescribing behavior with and...
Christian Gollier
Because of risk aversion, any sensible investment valuation system should value less projects that contribute more to the aggregate risk. In theory, this is done by adjusting discount rates to consumption betas. But in reality, most public institutions use a dis-count rate that is rather...
Mengchen Dong, Jane Conway, Jean-François Bonnefon, Azim Shariff, and Iyad Rahwan
Ayden Higgins, and Koen Jochmans
We consider the problem of identifying the parameters of a time-homogeneous bivariate Markov chain when only one of the two variables is observable. We show that, subject to conditions that we spell out, the transition kernel and the distribution of the initial condition are uniquely recoverable (...
Marc Bourreau, Bruno Jullien, and Yassine Lefouili
We study the impact of horizontal mergers on the incentives of merging firms to invest in incremental innovation. We provide a decomposition of this impact that clarifies the various forces at work and the differences between demand-enhancing and cost-reducing innovation. Moreover, we derive...
Andreas Alfons, Aurore Archimbaud, Klaus Nordhausen, and Anne Ruiz-Gazen
2026, 27 pages, forthcoming
For multivariate data, tandem clustering is a well-known technique aiming to improve cluster identification through initial dimension reduction. Nevertheless, the usual approach using principal component analysis (PCA) has been criticized for focusing solely on inertia so that the first components...
