Category: Event

Martin Černý (Charles University, Department of Applied Mathematics) will present his paper on “Dealing with uncertainty in cooperative game theory” on December 18th at 11:00 AM, room QA406.

Abstract:   

Incomplete cooperative games generalise the classical model of cooperative games by omitting the values of some of the coalitions. This allows to incorporate uncertainty into the model and study the underlying games as well as possible payoff distribution based only on the partial information. In this paper we perform a systematic study of incomplete games, focusing on two important classes of cooperative games: positive and convex games. Regarding positivity, we generalise previous results for a special class of minimal incomplete games to general setting. We characterise non-extendability to a positive game by the existence of a certificate and provide a description of the set of positive extensions using its extreme games. The results are then used to obtain explicit formulas for several classes of incomplete games with special structures. The second part deals with convexity. We begin with considering the case of non-negative minimal incomplete games. Then we survey existing results in the related theory of set functions, namely providing context to the problem of completing partial functions. We provide a characterisation of extendability and a full description of the set of symmetric convex extensions. The set serves as an approximation of the set of convex extensions. Finally, we outline an entirely new perspective on a connection between incomplete cooperative games and cooperative interval games.

Krisztina Katona (University of Technology Sydney) will present his paper on “Essays in electricity market design and semi-structural price modelling” on December 4th at 11:00 AM, room QA406.

Abstract:   

Electricity market designs across the world are complex, diverse and constantly evolving frameworks of policies, with multidisciplinary theoretical work underpinning them. The fast transforming landscape of the electricity sector driven by cutting-edge optimization theory and the global commitment to meet emission goals calls for re-evaluating existing electricity market designs and price models. This thesis contributes to this discussion. To start, the first essay describes the general features of electricity markets. The second essay delves into an in-depth review of the market design of Australia’s National Electricity Market (NEM). This is followed by the third essay that presents a novel bid stack electricity price model that replaces the widely used exponential supply functions with hyperbolic ones to permit price negativity. Finally, focusing on the Pennsylvania-New Jersey-Maryland Interconnection (PJM) in the United States, the Balancing Market (BM) in Great Britain and the NEM in Australia, the fourth essay infers prices along the supply curves using largely the same optimization algorithms as the respective market operators do to assess the degree of supply monotonicity and compare welfare in these markets.

Marieke Pahlke  (Institute of Operations and Decision Sciences, Corvinus University) will present his paper on “Dynamic Consistency in Ambiguous Dutch Auctions” on November 27th at 11:00 AM, room QA406.

Abstract:   

We study a decreasing price auction with an ambiguity-neutral seller and two ambiguity-averse buyers. Due to the dynamic structure, buyers learn about the valuation of the opponent buyer during the auction. We characterize a belief formation process that allows buyers to consider their knowledge of the information structure. This process leads to a rectangular ex-ante belief set and implies dynamically consistent behavior. Then, we show that the seller can extract almost all surplus even if buyers behave dynamically consistently. Further, in our setting, buyers accept higher prices compared to a consistent planning approach.

Anastas Tenev  (Institute of Economics, Corvinus University) will present his paper on “Directed Reciprocity Subverts Altruism in Highly Adaptive Populations” on November 20th at 11:00 AM, room QA406.

Abstract:   

Directed reciprocity is generally considered to be a powerful driver for cooperation. Using extensive simulations within an established stylized framework, we test the strength of this relationship. We confirm that directed reciprocity boosts cooperation, but only in the case of relatively inert populations. For highly adaptive populations we find the opposite: directed reciprocity impedes cooperation. 

Rafael Treibich   (University of Southern Denmark) will present his paper “Repeated Majority Voting“ (co-authored with A. Macé) on June 16th at 10:00 AM, room QA 406. One-to-one meetings with the speaker can be arranged; please contact the seminar organizers, Dr. Noémie Cabau (cabau.noemie@gtk.bme.hu) and Dr. Arseniy Samsonov (samsonov.arseniy@gtk.bme.hu).  

Abstract:   

The theory of repeated games offers a compelling rationale for cooperation in a variety of environments. Yet, its consequences for collective decision-making have been largely unexplored. In this paper, we propose a general model of repeated voting in committees and study equilibrium behavior under alternative majority rules. We characterize the set of equilibrium payoffs and show how repetition may reduce the inefficiency of majority voting. In turn, this affects the comparison of majority rules, which may differ significantly relative to the static setting. The model provides a rationale for the use of supermajority rules, while accounting for the prevalence of consensus in committee voting. 

Szilvia Papai  (Concordia University) will present her paper “Fair Maximum Matching Under Dichotomous Preference“ (co-authored with Shahidul Islam) on May 30th at 2:30 PM, room QA 406. One-to-one meetings with the speaker can be arranged; please contact the seminar organizers, Dr. Noémie Cabau (cabau.noemie@gtk.bme.hu) and Dr. Arseniy Samsonov (samsonov.arseniy@gtk.bme.hu).  

Abstract:   

In a many-to-one matching problem children have dichotomous preferences over daycares, and daycares have strict priorities over children. Given the limited enrolment capacity of daycares, the main objective is to find a matching mechanism that is fair for children (i.e., does not violate the daycare priorities) and maximizes the number of matched children. We identify a class of mechanisms that are fair and always lead to a maximum matching. We also show that these mechanisms are strategyproof for the children. 

Anastasia Leontiou  (University of Ioannina) will present her job market paper “Tacit bundling among rivals: Limited availability bargains to loss-averse consumers“ (co-authored with N. Ziros) on March 24th at 10 AM, room QA 406. One-to-one meetings with the speaker can be arranged; please contact the seminar organizers, Dr. Noémie Cabau (cabau.noemie@gtk.bme.hu) and Dr. Arseniy Samsonov (samsonov.arseniy@gtk.bme.hu).  

Abstract:   

The current paper addresses a mechanism that encourages the bundle consumption of two substitute goods in a partially differentiated duopoly. Assuming consumer loss aversion à la ‎Kőszegi and Rabin (2006), we develop a bait-and-switch model, where a seller offers a discount in limited availability to attract consumers’ interest and increase their willingness to pay when the discount is not available to avoid the disappointment of leaving the store empty-handed. Due to market competition, such stochastic pricing is effective only when it induces the joint purchase of the products and consumers end up buying both products. As a result, this bait-and-switch strategy creates conditions for collusion between the rival firms as they achieve bundle scheme sales at high component prices without any explicit agreement. Hence, our results shed light on bait-and-switch practices that might require additional, well-designed policies. 

Héctor Hermida-Rivera  (University of East Anglia) will present his job market paper “Stable Voting Rules“ on March 20th at 10 AM, room QA 406. One-to-one meetings with the speaker can be arranged; please contact the seminar organizers, Dr. Noémie Cabau (cabau.noemie@gtk.bme.hu) and Dr. Arseniy Samsonov (samsonov.arseniy@gtk.bme.hu).  

Abstract:   

This paper introduces a flexible notion of stability for voting rules that can be used with any equilibrium concept. Theorem 1 shows that if players’ utility function satisfies four natural axioms, a voting rule is stable in Nash equilibria if and only if it has a unique minimal winning coalition. Theorem 2 shows that under the same four axioms, the set of stable voting rules in undominated Nash equilibria contains the set of voting rules with a unique minimal winning coalition and is contained in the set of voting rules with non-empty intersection of minimal winning coalitions. Finally, Theorems 3 to 6 rely on these results to partially characterise the set of self-stable constitutions, where a constitution is a pair of voting rules: an ordinary one for routine issues, and an extraordinary one for amendments.

Luca Sandrini (Research Center of QSMS, BME) will present: “Protecting secrets with organizational innovations “ on March 14th at 2:30 PM, room QA 406.

Abstract:   

I propose a theory of the determinants of organizational innovation which considers it as a device to lower workers’ autonomy in the production process and their ability to collect information about it. In particular, I show that firms may have incentives to increase their control over the workforce to limit spillovers of potentially valuable information if they cannot limit workers’ mobility. I design a theoretical model where firms decide how to organize the workforce to reach a target level of productivity. I assume workers’ effort increases productivity at the organizational level, but it may reduce workers learning if excessive. When firms face the threat of information spillovers regarding their secrets, they are keener to intensify control over the workforce to limit it. From a policy perspective, I show banning laws restricting workers’ mobility might be an incomplete policy, as companies would find alternative mechanisms other than legal protections to defend against appropriation. 

Maxim Senkov (CERGE-EI Center for Economic Research and Graduate Education – Economics Institute) will present his job market paper “Setting Interim Deadlines to Persuade“ on March 10th at 10 AM, room QA 406. One-to-one meetings with the speaker can be arranged; please contact the seminar organizers, Dr. Noémie Cabau (cabau.noemie@gtk.bme.hu) and Dr. Arseniy Samsonov (samsonov.arseniy@gtk.bme.hu).  

Abstract:   

A principal funds a multistage project and retains the right to cut the funding if it stagnates at some point. An agent wants to convince the principal to fund the project as long as possible and can design the flow of information about the progress of the project in order to persuade the principal. If the project is sufficiently promising ex ante, then the agent commits to providing only the good news that the project is accomplished. If the project is not promising enough ex ante, the agent persuades the principal to start the funding by committing to provide not only good news but also the bad news that a project milestone has not been reached by an interim deadline. I demonstrate that the outlined structure of optimal information disclosure holds irrespective of the agent’s profit share, benefit from the flow of funding, and the common discount rate.