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econ.TH2023★ 2 cited
Coherent Distorted Beliefs
Christopher P. Chambers, Yusufcan Masatlioglu, Collin Raymond
Many models of economics assume that individuals distort objective probabilities. We propose a simple consistency condition on distortion functions, which we term distortion cohere…
econ.TH2023
Linearity, Geometry, and Substitution in Aggregate Production
Christopher P. Chambers, Alexis Akira Toda
We study aggregate production under efficient input allocation across heterogeneous production units. With constant returns to scale, every profit-maximizing allocation generates a…