Nemmers Prize Lecture
"Moving up a Demand Curve: Dynamic Screening with Positive Selection"
Wednesday, April 29, 2015
4:30 pm - 6:00 pm
Free and Open to the Public
McCormick Auditorium, James L. Allen Center
The lecture will briefly recall the well-studied screening dynamics that obtain in environments in which the principal contracts first with highly motivated agents and over time relevant contractual decisions concern least motivated ones: e.g. under private values, Coase’s durable good model and its rental variants, and under common values, the dynamic resolution of Akerlof’s lemons markets.
By contrast, relevant contractual decisions over time concern the most motivated agents in a number of other interesting environments, from the retention of employees to the conversion or emigration of economic, religious or ethnic minorities subject to discriminatory taxation or treatment, to the response to technological threats or simply to interpersonal relationships. Games with “positive selection” turn out to admit a number of remarkably simple properties, which will be explored in the lecture.
Jean Tirole is chairman of the Foundation Jean-Jacques Laffont / Toulouse School of Economics and scientific director of the Institute for Industrial Economics, University of Toulouse Capitole in France. Tirole has been influential in the theoretical and practical application of game theory and information theory to industrial organization and regulation. His research interests also include finance, macroeconomics, international finance, economics and psychology. He is the author of 11 books including “Inside and Outside Liquidity” with Bengt Holmström (2011); “The Theory of Industrial Organization” (1988); “Game Theory” with Drew Fudenberg (1991); “A Theory of Incentives in Regulation and Procurement” with Jean-Jacques Laffont (1993); and “The Theory of Corporate Finance” (2006). He was the 2014 winner of the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel.
Free parking is available in most campus parking lots after 4pm.
There will be a reception immediately following the lecture.