11 papers
Risk-Averse Welfare Maximization via Marginal Treatment Effects
Jarrod Burgh, Emerson Melo
This paper studies risk-averse treatment allocation when individuals self-select into treatment based on unobserved characteristics. We develop a framework that combines the margin…
Learning in Random Utility Models Via Online Decision Problems
Emerson Melo
This paper examines the Random Utility Model (RUM) in repeated stochastic choice settings where decision-makers lack full information about payoffs. We propose a gradient-based lea…
Wishful Thinking is Risky Thinking
Jarrod Burgh, Emerson Melo
We develop a model of wishful thinking that incorporates the costs and benefits of biased beliefs. We establish the connection between distorted beliefs and risk, revealing how wis…
A Distributionally Robust Random Utility Model
David Müller, Emerson Melo, Ruben Schlotter
This paper introduces the distributionally robust random utility model (DRO-RUM), which allows the preference shock (unobserved heterogeneity) distribution to be misspecified or un…
On the Distributional Robustness of Finite Rational Inattention Models
Emerson Melo
In this paper we study a rational inattention model in environments where the decision maker faces uncertainty about the true prior distribution over states. The decision maker see…
Learning in Random Utility Models Via Online Decision Problems
Emerson Melo
This paper studies the Random Utility Model (RUM) in a repeated stochastic choice situation, in which the decision maker is imperfectly informed about the payoffs of each available…