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Claude Crampes et Nils-Henrik Von Der Fehr
n° 22-1315, mars 2022
Reaping the full benefits from cross-border interconnection typically requires reinforcement of national networks. When the relevant parts of the networks are complements, a lack of coordination between national transmission system operators typically results in investment below optimal levels in...
Johannes Hörner et Anna Sanktjohanser
n° 22-1327, mars 2022
We consider a repeated game, in which due to private information and a lack of flexible transfers, cooperation cannot be sustained efficiently. In each round, the buyer either buys from the seller or takes an outside option. The fluctuating outside option may be public or private information. When...
Robin Harding, Mounu Prem, Nelson A. Ruiz et David L. Vargas
n° 22-136, mars 2022
While existing work has demonstrated that campaign donations can buy access to benets such as favorable legislation and preferential contracting, we highlight another use of campaign contributions: buying reductions in regulatory enforcement. Specically, we argue that in return for campaign...
Christophe Gaillac et Eric Gautier
vol. 28, n° 1, février 2022, p. 504–524
We consider a linear model where the coefficients - intercept and slopes - are random and independent from regressors which support is a proper subset. When the slopes do not have heavy tails, the joint density of the random coecients is identied. Lower bounds on the supremum risk for the...
Rey Dang, Michel Simioni, Lubica Hikkerova et Jean-Michel Sahut
n° 181, février 2022
This study re-examines the relationship between women on corporate boards (WOCB) and corporate social performance (CSP) for a sample of companies from the Fortune 1000 ranking over the period 2004 to 2018 (ranked from 501 to 1000). To take into account the complex and non-linear relationship as...
Jean-Paul Décamps et Stéphane Villeneuve
n° 22-1301, février 2022
We study a dynamic model of a rm whose shareholders learn about its profitability, face costs of external nancing and costs of holding cash. The shareholders' problem involves a notoriously challenging singular stochastic control problem with a two-dimensional degenerate diffusion process. We solve...
François Salanié et Vera Zaporozhets
vol. 24, n° 1, février 2022, p. 140–158
We analyze the problem of allocating irrigation water among heterogeneous farmers when water supply is stochastic. If farmers are risk-neutral, a spot market for water is efficient; while the oft-used uniform rationing system is inefficient, both ex ante and ex post. Indeed, we show that it leads...
Emiliano Catonini et Antonio Penta
n° 22-1298, février 2022
Backward Induction is a fundamental concept in game theory. As an algorithm, it can only be used to analyze a very narrow class of games, but its logic is also invoked, albeit informally, in several solution concepts for games with imperfect or incomplete informa-tion (Subgame Perfect Equilibrium,...
Jérôme Bolte, Cyrille Combettes et Edouard Pauwels
n° 22-1311, février 2022
The Frank-Wolfe algorithm is a popular method for minimizing a smooth convex function f over a compact convex set C. While many convergence results have been derived in terms of function values, hardly nothing is known about the convergence behavior of the sequence of iterates (xt)t2N. Under the...
Mounu Prem, Miguel E. Purroy et Juan F. Vargas
n° 22-1305, février 2022
Anti-personnel landmines are one of the main causes of civilian victimization in conflict-affected areas and a significant obstacle for post-war reconstruction. Demining campaigns are therefore a promising policy instrument to promote long-term development. We argue that the economic and social...
