Tai-Wei Hu

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The Lagos-Wright model—a monetary model in which pairwise meetings alternate in time with a centralized meeting—has been extensively analyzed, but always using particular trading protocols. Here, trading protocols are replaced by two alternative notions of implementability: one that allows only individual defections and one that also allows cooperative(More)
Working papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded offi cial Federal Reserve Bank of Cleveland publications. The views stated herein are those of the authors and are not(More)
A decision maker needs predictions about the realization of a repeated experiment in each period. An expert provides a theory that, conditional on each finite history of outcomes, supplies a probabilistic prediction about the next outcome. However, there may be false experts without any knowledge of the data-generating process who deliver theories(More)
This paper studies the choice of payment instruments in a simple model where both money and credit can be used as means of payment. We endogenize the acceptability of credit by allowing retailers to invest in a costly record-keeping technology. Our framework captures the two-sided market interaction between consumers and retailers, leading to strategic(More)
A decision maker needs predictions about the realizations of a repeated experiment in each period. An expert provides a theory that, conditional on each finite history of realizations, supplies a probabilistic prediction. However, there may be false experts without any knowledge of the data-generating process who may deliver theories strategically. Hence,(More)
Bank of Canada working papers are theoretical or empirical works-in-progress on subjects in economics and finance. The views expressed in this paper are those of the authors. No responsibility for them should be attributed to the Bank of Canada. ii Acknowledgements We thank many friends and colleagues, especially Abstract This paper studies the welfare(More)
We propose a theory of mixed strategies in zero-sum two-person games. Given a finite zero-sum two-person game g, we extend it to collective games g ∞ and g ∞,S , which are infinite repetitions of the game g. Players in the collective games are restricted to use computable strategies only, but each has a complex sequence that can be used in the computation.(More)