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Theoretical Economics @econtheory.bsky.social · 11h

How does a profit-maximizing certifier design and price tests? Two information channels shape the optimal menu: what the test results reveal and what the buyer's choice of test reveals www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 11h

How do contracts shape assortative matching when workers’ histories are private? This paper shows that screening contracts deliver geometric convergence, while adverse selection without them slows adjustment or stops it altogether www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 10/09/2026

How can directions of preference improvement be characterized without addition, subtraction, multiplication, division, limits, or epsilons and deltas? No algebra, no topology, just orders. This paper proposes such a framework www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 08/09/2026

In our dynamic model, users decide whether to share randomly drawn stories, and spotting false ones takes costly attention. Endogenous attention means early draws affect the outcome; less credible falsehoods can spread more. @tuvaldan @DrewFudenberg www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 04/09/2026

We show, under certain conditions, that if the players start reasoning about more information sets in a dynamic game, then the associated rationalizability procedure will lead to a smaller, or equal, set of outcomes www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 04/09/2026

Is efficiency preserved for stable matchings under two-sided incomplete information? The paper reveals a fundamental asymmetry: it holds for submodular but not supermodular premuneration values, hinging on worst-case misassignment deduction www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 18/08/2026

We study optimal mechanisms for allocation problems without transfers where agents have correlated types. Using graph-theoretic methods, we show that exactly optimal mechanisms are impractically complex. We propose approximately optimal alternatives www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 10/08/2026

We provide a foundation for stochastic choice as the long-run frequency of repeated choices over time www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 04/08/2026

When is ruling out beneficial two-agent swaps enough for full efficiency? The paper shows that for monotonic object-allocation rules, pairwise efficiency and non-wastefulness together imply Pareto efficiency www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 04/08/2026

We prove that any stable matching mechanism suffers from systematic inefficiency of striking magnitude: in large random markets, any stable allocation is Pareto-inefficient with high probability, and almost all students can simultaneously improve www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 15/07/2026

An agent privately observes a Markov chain online and reports it to a designer. We show that, in general, keeping track of the empirical frequency of transition counts in the agent’s reports is insuﬃcient, despite the true state being Markovian www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 14/07/2026

Theoretical Economics Volume 21, Issue 3 (July 2026) is now online www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 09/07/2026

Does expanding the range of available contractual terms always improve welfare? This paper shows that adding contractual terms can harm agents and identifies conditions under which such welfare losses are prevented. www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 06/07/2026

We introduce semi-stability, a novel notion that guarantees existence and restores stability in roommate problems through minimal policy or group interventions www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 01/07/2026

TE is fortunate to have thoughtful & committed AEs who are essential for the smooth running of the journal. We are pleased to announce Arjada Bardhi (NYU), Giacomo Lanzani (UC, Berkeley), Lucas Maestri (FGV), Ludovic Renou (QMUL, ASU), & Venky Venkateswaran (NYU) joined July 1st.

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Theoretical Economics @econtheory.bsky.social · 30/06/2026

How should information be sold? We show a monopolist info provider will use threshold signals/menus to shape sellers’ prices, often raising welfare relative to full information. Welfare rises if production cost is high, but falls if low www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 26/06/2026

New in Theoretical Economics: “Combinator Dynamics: Multi-Dimensional Evolutionary Learning” by Srinivas Arigapudi, Omer Edhan, Yuval Heller & Ziv Hellman. A model of how agents imitate and recombine traits across decision dimensions. @heller_yuval www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 12/06/2026

We study multi-group teams tackling binary projects. Equilibrium features gradualism, inaction & contribution cycles. Delay grows super-proportionally with project size. Two-group teams outperform homogeneous ones, even with near equal preferences www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 12/06/2026

A privately informed principal chooses a communication device to influence players without ex-ante commitment. We characterize the resulting equilibria and relate them to standard communication equilibria www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 21/05/2026

Theoretical Economics Volume 21, Issue 2 (May 2026) is now online econtheory.org

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Theoretical Economics @econtheory.bsky.social · 13/05/2026

How much experimentation occurs in games where players observe each other's actions but not outcomes? This paper shows that the equilibrium amount of experimentation exceeds that under public observation, and quantifies this excess www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 06/05/2026

How should information be disclosed to strategic players? The paper develops a tractable framework and shows that optimal policies are often simple: targeted or linear disclosure. Applications include VC, belief polarization, and price competition www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 29/04/2026

Why do people think streaks are unlikely? This paper develops a formal account of a belief in mean reversion and shows how it can generate some of the core implications of the Law of Small Numbers www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 27/04/2026

In auctions for income-generating assets such as intellectual property licenses, the revenue-maximizing mechanism combines upfront payments and royalties: higher bidders pay more upfront and face lower royalty caps www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 21/04/2026

How does the amount of information required to monitor many players scale with their number? In repeated games, we show cooperation turns on the ratio of the discount rate and the per-capita channel capacity of the stage game monitoring structure www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 18/04/2026

This paper develops a general theory to recover the inverse welfare function that rationalizes a given tax schedule as optimal in complex environments. This inverse welfare function can be used to find Pareto and/or welfare improving reforms www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 14/04/2026

Polarization happens www.econometricsociety.org/publications...

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Theoretical Economics @econtheory.bsky.social · 26/03/2026

In the context of school choice, it is possible to compare stable mechanisms in terms of coalitional manipulability econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 26/03/2026

How do platforms keep you scrolling? This paper shows the optimal strategy is "dilution"—rare but highly informative signals that drive users to extreme beliefs, extract all surplus, and remain credible even without platform's long-term commitment econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 05/03/2026

Can consumer reviews form barriers to entry? If so, what can review platforms do about it? The answer: stop well-established firms from acquiring new reviews econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 27/02/2026

A news platform shapes consumers' beliefs with information and narratives (models of what determines outcomes). The strategy that maximizes their anticipatory utility combines biased information and false narratives, and induces belief polarization econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 27/02/2026

How does ambiguous product information affect trade between a price-setting seller and an ambiguity-sensitive buyer? We find that the right kind of ambiguous information makes the buyer or seller better off than any possible unambiguous information econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 13/02/2026

This paper characterizes when and how robust decisions can be objectively improved with data econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 03/02/2026

Does freer trade necessarily raise welfare for all? No. This paper shows that a country prefers autarky to frictionless trade with a sufficiently less productive partner. Losses arise due to displaced domestic varieties. @JustinTumlinson econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 30/01/2026

Theoretical Economics Volume 21, Issue 1 (January 2026) is now online econtheory.org

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Theoretical Economics @econtheory.bsky.social · 23/01/2026

Our new paper “Efficient investment, search, and sorting in matching markets” is at @TE. We show a new second welfare theorem for search markets, e.g. labour, marriage, or products: the market can overcome the hold-up and matching problems econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 14/01/2026

The paper focuses on a single intrinsic difference between physical and digital currency: traceability. This technological advance in record-keeping can be used by the monetary authority to achieve efficiency in a wide range of circumstances econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 14/01/2026

The paper studies reputational bargaining in which the stubborn type can choose their initial demand. Types can pool or separate in equilibrium. When the probability of the stubborn type is small, any feasible payoff can be achieved in equilibrium econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 16/12/2025

We revisit revealed preference analysis when choices are observed imprecisely. Building on Afriat and Fishburn, we study rationalization when the analyst only knows that the agent chose *some* option within a set econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 16/12/2025

if we randomly sample economies from a distribution, will the stable assignments of these economies converge to a stable assignment of the limit economy as we increase the sample? I provide a condition on the economy that guarantees this convergence econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 08/12/2025

A dynamic model of durable-good monopoly where the seller minimises lifetime regret against the worst-case type of buyer econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 19/11/2025

Theoretical Economics Volume 20, Issue 4 (November 2025) is now online econtheory.org

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Theoretical Economics @econtheory.bsky.social · 11/11/2025

We study stochastic choice using marginal distributions of menus and choices. RUM has no testable implications, but any domain restriction generates data restrictions. Luce also rationalizes any dataset, but unlike RUM its parameters are identified econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 08/11/2025

This paper shows that the limit equilibrium payoff set for stochastic games with imperfect public monitoring expands when the monitoring structure improves in the information order based on a weaker notion of garbling called weighted garbling econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 04/11/2025

How does verifiable information flow through networks? Full disclosure arises only when all players are biased in the same direction relative to the decision maker. Hence, the optimal network is a line where players are ordered by their preferences econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 24/10/2025

Perfectly patient and monotone preferences on infinite utility streams can allow for strict comparisons of almost all utility streams econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 21/10/2025

Robust contracts for agents with unknown beliefs econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 16/09/2025

Standard dynamic preference models cannot simultaneously satisfy the properties of time consistency, the separation of time and risk preferences and the ability to accommodate an indifference to the timing of when risk is resolved econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 16/09/2025

What is the efficient provision of public information in frictional search markets? I characterize the constrained-efficient market segmentation when agents use it to direct their search econtheory.org/ojs/index.ph...

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Theoretical Economics @econtheory.bsky.social · 12/09/2025

The Executive Committee of the Econometric Society has approved an increase in the publication fees for papers in its two Open Access journals, Quantitative Economics and Theoretical Economics. Read more www.econometricsociety.org/society/news...

econometricsociety.org

Changes in Publication Fees for Quantitative Economics and Theoretical Economics - The Econometric Society

The Executive Committee of the Econometric Society has approved an increase in the publication fees for papers in its two Open Access...

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