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Bargaining with Mechanisms

By Marcin Pęski

American Economic Review, June 2022

Two players bargain over a single indivisible good and a transfer, with one-sided incomplete information about preferences. Both players can offer arbitrary mechanisms to determine the allocation. We show that there is a unique perfect Bayesian equilibriu...

Police Force Size and Civilian Race

By Aaron Chalfin, Benjamin Hansen, Emily K. Weisburst, and Morgan C. Williams Jr.

American Economic Review: Insights, June 2022

We report novel empirical estimates of the race-specific effects of larger police forces in the United States. Each additional police officer abates approximately 0.1 homicides. In per capita terms, effects are twice as large for Black versus White victim...

Top of the Batch: Interviews and the Match

By Federico Echenique, Ruy González, Alistair J. Wilson, and Leeat Yariv

American Economic Review: Insights, June 2022

Most doctors in the National Resident Matching Program (NRMP) match with one of their most preferred internship programs. However, surveys indicate doctors' preferences are similar, suggesting a puzzle: how can so many doctors match with their top choices...

A Global Version of Samuelson's Dictum

By Yaqing Xiao, Hongjun Yan, and Jinfan Zhang

American Economic Review: Insights, June 2022

Samuelson's Dictum refers to the conjecture that there is more informational inefficiency at the aggregate stock market level than at the individual stock level. Our paper recasts it in a global setup: there should be more informational inefficiency at th...

Satisficing: Integrating Two Traditions

By Florian M. Artinger, Gerd Gigerenzer, and Perke Jacobs

Journal of Economic Literature, June 2022

In 1955, Herbert Simon introduced the notion of satisficing: an agent satisfices by searching for an alternative that meets an aspiration level but does not optimize. We survey more than 60 years of advances in understanding satisficing in economics, psyc...