arXiv subjects

Pablo Schenone

Publications and source records attributed to Pablo Schenone.

4 recordsLinked to original sources

arXiv2024

Consistent Conjectures in Dynamic Matching Markets

We provide a framework to study stability notions for two-sided dynamic matching markets in which matching is one-to-one and irreversible. The framework gives center stage to the set of matchings an agent anticipates would ensue should they remain unmatched, which we refer to as the agent's conjectures. A collection of conjectures, together with a pairwise stability and individual rationality requirement given the conjectures, defines a solution concept for the economy. We identify a sufficient condition--consistency--for a family of conjectures to lead to a nonempty solution (cf. Hafalir, 2008). As an application, we introduce two families of consistent conjectures and their corresponding solution concepts: continuation-value-respecting dynamic stability, and the extension to dynamic markets of the solution concept in Hafalir (2008), sophisticated dynamic stability.

econ.TH↗

arXiv2023

Disentangling Revealed Preference From Rationalization by a Preference

The weak axiom of revealed preference (WARP) ensures that the revealed preference (i) is a preference relation (i.e., it is complete and transitive) and (ii) rationalizes the choices. However, when WARP fails, either one of these two properties is violated, but it is unclear which one it is. We provide an alternative characterization of WARP by showing that WARP is equivalent to the conjunction of two axioms each of which separately guarantees (i) and (ii).

econ.TH↗

arXiv2020

Final Topology for Preference Spaces

We say a model is continuous in utilities (resp., preferences) if small perturbations of utility functions (resp., preferences) generate small changes in the model's outputs. While similar, these two questions are different. They are only equivalent when the following two sets are isomorphic: the set of continuous mappings from preferences to the model's outputs, and the set of continuous mappings from utilities to the model's outputs. In this paper, we study the topology for preference spaces defined by such an isomorphism. This study is practically significant, as continuity analysis is predominantly conducted through utility functions, rather than the underlying preference space. Our findings enable researchers to infer continuity in utility as indicative of continuity in underlying preferences.

econ.TH↗

arXiv2018

Causality: a decision theoretic approach

We propose a decision theoretic framework that allows a decision maker to express its causal model of the world. We extend the model of Savage (1972) by allowing the decision maker (DM) to choose policy interventions prior to choosing acts over the nonintervened variables. We define what it means for the DM's choices to express the DM's belief that the relation between some variables is causal. We provide axioms characterizing when the DM's causal model, as expressed through the DM's choices, is represented as a directed acyclic graph. A final axiom characterizes when the DM's causal model has a representation like the one in Pearl (1995). Consequently, under this additional axiom one can apply Pearl's results to identify the DM's causal model from the DM's probabilistic model.

econ.TH↗