"Paying Too Much Attention: Theory and Evidence" New! with Hyeonggyun Ko and Adnan Mahmood
When the stakes rise, most people reasonably look at more information so they can decide confidently. But their confidence improves less than the evidence justifies. Because they treat each piece of evidence as weaker than it really is, they keep looking until they feel sure enough—and so pay more attention than the stakes warrant. In a lab experiment, that over-attention cost them about 25% of their potential earnings.
"Overinference from Weak and Correlated Signals"
Decision-makers exhibit overweighting bias and correlation neglect, leading to extreme beliefs. Directly improving for overweighting bias affects correlation neglect and vice versa.
"Duality and Yquilibrium" with Jacob K. Goeree and Brett Williams
A novel duality in vector optimization is employed to an alternative characterization of Walrasian equilibrium. Equilibrium existence and the welfare theorems are a direct consequence of duality. The scalarized vector program -- Economy's Potential -- is introduced for computing equilibria.
"Overconfidence and Social Learning" with Adnan Mahmood
There are distinct effects of confidence on welfare that depends on whether one exhibits relative or absolute confidence about their signal accuracy. Relative overconfidence improves welfare while absolute overconfidence worsens welfare after realizing ones true accuracy.
"Sharing information: Could Experts Consolidate?" with Adnan Mahmood
No, with MLRP; yes, with strong complementary information.
"An Efficient Value on Games with Graph"
An efficient value on cooperative games with graphs is proposed and axiomatically characterized. An example on disaster fund allocation is given.
"Anchored Updating from Recommendations" with Hyoeun Park (Journal of Mathematical Economics)
Individuals update their beliefs from recommendations on a menu instead of noisy signals. A belief updating rule that satisfies order independence of recommendations is proposed and characterized in this environment.
"Designing Markets" with Jacob K. Goeree and Brett Williams
"Y Dynamics" with Jacob K. Goeree and Brett Williams
"Costly Information Revealed by Beliefs" with Suha Kim and Hyeonggyun Ko