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Jean-Paul Décamps, Fabien Gensbittel, and Thomas Mariotti
2025, forthcoming
We study the optimal investment policy of a firm facing both technological and cash-flow uncertainty. At any point in time, the firm can decide to invest in a standalone technology or to wait for a technological breakthrough. Breakthroughs occur when market conditions become favorable enough,...
Milo Bianchi, and Marie Brière
We study the introduction of robo-advising on a large set of Employee Saving Plans. Differently from many services that fully automate portfolio decisions, our robo-advisor proposes investment and rebalancing strategies, leaving investors free to follow or ignore them. The resulting human-robot...
Catherine Bobtcheff, Raphaël Levy, and Thomas Mariotti
Firms receiving independent signals on a common-value risky project compete to be the first to invest. When firms are symmetric and competition is winner-take-all, rents are fully dissipated in equilibrium and the extent to which signals are publicly disclosed is irrelevant for welfare. When...
David Bardey, and Philippe De Donder
Toronto, 2025, Toronto, forthcoming
Personalized medicine is still in its infancy, with costly genetic tests providing little actionable information in terms of efficient prevention decisions. As a consequence, few people undertake these tests currently, and health insurance contracts pool all agents irrespective of their genetic...
Laurent Miclo
Céline Bonnet, Zohra Bouamra-Mechemache, and Hugo Molina
We develop a bilateral oligopoly framework with manufacturer-retailer bargaining to analyze the impact of retail mergers on market outcomes. We show that the surplus division between manufacturers and retailers depends on three bargaining forces and can be interpreted in terms of an “equilibrium of...
Manon Costa, Sébastien Gadat, and Lorick Huang
Yannis Katsoulacos, and Marc Ivaldi
2025Joseph Harrington, and Maarten Pieter Schinkel (eds.), Cambridge University Press, 2025
Andrea Attar, Thomas Mariotti, and François Salanié
Victor Chernozhukov, Johannes Hörner, Eliana La Ferrara, and Ivan Werning (eds.), chapter 1, September 2025, forthcoming
Etienne de Montbrun, and Jérôme Renault
vol. 12, n. 3, July 2025, pp. 267–301
We study the convergence of optimistic gradient descent ascent in unconstrained bilinear games. For zero-sum games, we prove exponential convergence to a saddle-point for any payoff matrix, and provide the exact ratio of convergence as a function of the step size. Then, we introduce OGDA for...
