5 papers
Robust Capital Budgeting
Yunzhi Hu, Fei Li, Hanqing Ye +1
We study capital budgeting when a manager privately knows project productivity and her empire-building benefits, while headquarters lacks credible priors. Headquarters minimizes ma…
Regulating a Monopolist through Capacity Control
Dihan Zou
We study monopoly regulation when capacity is contractible but subsequent output is not. A firm privately observes its production cost before installing costly capacity and then ch…
Monitoring Hierarchies in Knowledge Production
Shota Ichihashi, Fei Li, Dihan Zou
We study peer monitoring design in knowledge production. A principal leads agents who work on different but related tasks. By working on their own tasks, agents acquire information…
Log-concave functions and transformations thereof
Dihan Zou
I summarize Bagnoli and Bergstrom (2005)'s review on log-concave functions, make several corrections, and augment the discussion with further results that can be useful in establis…
Regulating a Monopolist without Subsidy
Jiaming Wei, Dihan Zou
We study monopoly regulation under asymmetric information about costs when subsidies are infeasible. A monopolist with privately known marginal cost serves a single product market…