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)
This paper adopts mechanism design to investigate the coexistence of …at money and higher-return assets. We consider an economy with pairwise meetings where …at money and risk-free capital compete as means of payment, as in Lagos and Rocheteau (2008). The trading mechanism in pairwise meetings is chosen among all individually rational, renegotiation-proof(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)
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)