Browsing by Author "Jakobsen, Alexander M."
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- ItemOpen AccessCoordination in games with general network effects(2009) Jakobsen, Alexander M.; Eaton, B. Curtis
- ItemOpen AccessEssays on Ambiguity(2019-07-23) Ferdowsi, Sina; Jakobsen, Alexander M.; Oxoby, Robert J.; Migrow, DimitriThis paper provides a review of the models of ambiguity and ambiguity aversion within the framework of subjective utility theory, and in chapters 2 and 3 develops applications of these models. In chapter 2, a model of status quo bias is presented and related literature is discussed. I show that an ambiguity averse decision-maker has an incentive to keep the `"mediocre" status quo unchanged. In chapter 3, a model of voting under ambiguity of candidate platforms is proposed. I show that under certain circumstances, the voters have an incentive to abstain from voting and the candidates are inclined to take more extreme positions.
- ItemOpen AccessRisky Learning with Imperfect Recall(2021-09-07) Olson, Alaina; Jakobsen, Alexander M.; McKenzie, Kenneth J.; Migrow, DimitriThis paper proposes a model of endogenous memory recall in a general dynamic setting using the framework of rational inattention. I introduce the general model setup in chapter 2 through the lens of a rational Bayesian agent who faces no memory constraints. Building on this framework, I define a memory process in chapter 3. I then study how an exogenous memory process impacts the agent's optimal actions, and I discuss how the agent's choice of actions given her memory constraints can be used to approximate her risk preferences. Finally, endogenous memory costs enter into the agent's welfare maximization problem in chapter 4. These memory costs depend on the agent's memory process, and are amplified by an exogenously-specified ability parameter. I show that in the presence of endogenous memory costs, the agent selects her memory process according to her given ability: higher ability agents choose sharper memory processes, make riskier decisions in the context of learning, and ultimately expect greater welfare.