The 2014 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel

… Goes to Jean Tirole, whom I have referenced in my own research, and whom I think was an interesting (timely?) choice for the prize.  His research is precise, and covers industrial organization, markets, and regulation.  He has also written and co-written some excellent advanced text books. I look forward to hearing more from him over the coming years. Read more →

Asymmetric Information, Incentive Compatibility, and Participation

From the Wall Street Journal, May 12, 2014: How to Trap the Guilty and the Gullible, by  Steven Levitt and Stephen Dubner (you may recognize them at the Freakonomics authors). The economics of information are fascinating, particularly because many managers forget that information asymmetries create incentive disparities between principals and agents.  Revealing these is tricky, but much less expensive than… Read more →