Job Market Papers

Contesting Fake News

We model competition on a credence market governed by an imperfect label, signaling high quality, as a rank-order tournament between firms. In this market interaction, asymmetric firms jointly and competitively control the underlying quality ranking’s precision by releasing individual information. While the labels and the information they are based on can be seen as a public good guiding the consumers’ purchasing decisions, individual firms have incentives to strategically amplify or counteract the competitors’ information emission, thereby manipulating the label’s (or ranking’s) discriminatory power. Elements of the introduced theory are applicable to several (credence-good) industries which employ labels or rankings, including academic departments, books, music, and investment opportunities.

with Beatrice Roussillon & Paul Schweinzer
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(version from Oktober 4, 2023)
CESifo Working Paper

Choose Your Auction:
Mechanism design for a bidder

This study discusses the maximization of a bidder’s utility in auctions by leveraging the information about a bidder’s value to formulate the auction’s rules. To make the analysis interesting, the research focuses on auction formats perceived as fair and unbiased, in line with common EU or WTO procurement regulations. In our main setup, we do not allow the auction to pay the bidders and characterize a preferable auction format as a second-price auction with pooling regions. The analysis then extends to include transfers towards bidders and demonstrates how a substantial interim utility can be guaranteed to a bidder without running a deficit in equilibrium. The theory is applied to a model of favoritism, discussing whether forms of preferential treatment in auctions are preventable or detectable.

with Dmitriy Knyazev
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(version from Oktober 4, 2023)
SSRN Working Paper