{"title":"Endogenous technology choice in contests","authors":"Doron Klunover","doi":"10.1016/j.mathsocsci.2025.102491","DOIUrl":"10.1016/j.mathsocsci.2025.102491","url":null,"abstract":"<div><div>We consider a lottery contest between <em>n</em> risk-neutral symmetric players, who compete for a prize with a common value. Prior to exerting effort, each player chooses between an old technology, in which return on effort is certain, and a new technology, in which return on effort is uncertain but on average is equal to the return on effort in the old technology. We characterize symmetric and asymmetric equilibria and show that in equilibrium the new technology is adopted by a proper subset of the players. The results offer an explanation for endogenous emergence of asymmetric technologies in contests.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"139 ","pages":"Article 102491"},"PeriodicalIF":0.7,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145748443","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Dynamic adverse selection with the best and the worst in mind","authors":"Pascal Toquebeuf","doi":"10.1016/j.mathsocsci.2025.102490","DOIUrl":"10.1016/j.mathsocsci.2025.102490","url":null,"abstract":"<div><div>This paper analyzes a dynamic adverse selection market where buyers hold ambiguous beliefs about seller quality, modeled using neo-additive Choquet capacities and updated via optimistic, pessimistic, and Generalized Bayesian rules. First, we show that the choice of updating heuristic has a direct and systematic effect on the severity of adverse selection. While the optimistic and pessimistic rules invariably mitigate or amplify the problem, respectively, the Generalized Bayesian rule’s impact is conditional, its trajectory toward collapse, efficiency, or a stable partial market depending on a persistent ‘tug-of-war’ between the buyer’s static ambiguity attitude and the evolving probabilistic evidence. Our second main finding is that these immediate effects compound over time, leading to fundamentally different market trajectories. The pessimistic rule can drive the market to complete collapse, the optimistic rule can foster full participation, and the Generalized Bayesian path depends on the interplay between the buyer’s attitude and the evolving evidence. We further analyze how baseline ambiguity and ambiguity aversion modulate these dynamics, uncovering a complex role for ambiguity in shaping the rate of market evolution.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"139 ","pages":"Article 102490"},"PeriodicalIF":0.7,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145694046","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Taxing platforms with multi-homing","authors":"Yuta Saito , Yeming Zhang","doi":"10.1016/j.mathsocsci.2025.102478","DOIUrl":"10.1016/j.mathsocsci.2025.102478","url":null,"abstract":"<div><div>This paper investigates the effects of taxation on two-sided platforms, where some agents participate in a single platform (single-homing) and others engage with multiple platforms simultaneously (multi-homing) on both sides of the market (sellers and buyers). Agents’ homing choices are determined endogenously by platform pricing, while platforms set prices in response to ad valorem and unit taxes. We show that raising taxes on one side increases equilibrium prices on both the taxed and untaxed sides. Moreover, the unit tax burden is shared between platforms and users, making taxation more effective at reducing platform profits under multi-homing. This occurs because taxation lowers the number of multi-homers on the taxed side while raising their number on the untaxed side, which in turn prompts platforms to increase prices on the untaxed side. Finally, our welfare analysis identifies the optimal share of multi-homers that maximizes total surplus and clarifies when taxation improves overall welfare.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"139 ","pages":"Article 102478"},"PeriodicalIF":0.7,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145625126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A note on Pareto-optimal taxation mechanism in noncooperative strategic bilateral exchange","authors":"Ludovic A. Julien, Gagnie P. Yebarth","doi":"10.1016/j.mathsocsci.2025.102492","DOIUrl":"10.1016/j.mathsocsci.2025.102492","url":null,"abstract":"<div><div>This paper investigates the taxation mechanism implemented in strategic bilateral exchange by Gabszewicz and Grazzini (1999). These authors show that endowment taxation with transfers can implement a Pareto-optimal allocation when the preferences of traders are represented by some specific homothetic utility functions. We show that this taxation mechanism can also implement a Pareto-optimal allocation when the preferences of traders are represented by non homothetic utility functions. To this end, we consider a class of quasi-linear utility functions. Furthermore, we illustrate that, with quasi-linear utility functions, by introducing heterogeneity between traders, there are other environments in which this taxation mechanism implements a Pareto-optimal outcome.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"139 ","pages":"Article 102492"},"PeriodicalIF":0.7,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145797485","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Same-sex marriage, the great equalizer","authors":"Alexei Parakhonyak , Sergey V. Popov","doi":"10.1016/j.mathsocsci.2025.102448","DOIUrl":"10.1016/j.mathsocsci.2025.102448","url":null,"abstract":"<div><div>In a search and matching model with Nash bargaining, we find infinitely many asymmetric equilibria in which one sex receives a lower payoff than a similarly productive agent of the opposite sex. The mechanism resembles a social norm: if all agents on the opposite side of the marriage market become more demanding, continued searching yields diminished returns. However, if same-sex marriage is legalized and each side of the market includes a positive, arbitrarily small, share of bisexual agents, then only symmetric equilibria survive. This result highlights how restrictions on same-sex marriage reinforce asymmetries in opposite-sex matchings.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"138 ","pages":"Article 102448"},"PeriodicalIF":0.7,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145010895","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Note on intertemporal preference with loss aversion","authors":"Kyoung Jin Choi , Junkee Jeon , Hyeng Keun Koo","doi":"10.1016/j.mathsocsci.2025.102469","DOIUrl":"10.1016/j.mathsocsci.2025.102469","url":null,"abstract":"<div><div>We study two models of intertemporal preferences exhibiting loss aversion: one based on utility changes relative to a reference point, and another incorporating mental adjustment costs. Within a multi-period (possibly infinite-horizon) framework, we show that the two formulations are theoretically equivalent. The resulting preferences are neither monotone nor concave in general. We derive necessary and sufficient conditions for monotonicity and concavity, and provide a continuous-time extension that preserves the equivalence. Our results offer a tractable and rigorous foundation for modeling intertemporal behavior under reference-dependent preferences.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"138 ","pages":"Article 102469"},"PeriodicalIF":0.7,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145266841","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On human capital accumulation in times of epidemic","authors":"Stefano Bosi , David Desmarchelier , Cuong Le Van","doi":"10.1016/j.mathsocsci.2025.102466","DOIUrl":"10.1016/j.mathsocsci.2025.102466","url":null,"abstract":"<div><div>In the spirit of Goenka and Liu (2020), we study an endogenous growth model à la Lucas (1988) with an infectious disease spreading according to SIS dynamics and slowing human capital accumulation. Our model differs from theirs in some respects. We focus solely on the planner’s solution and cover both bounded and unbounded growth cases, under the assumption of more general preferences. Considering a single capital good allows us to provide a global analysis and in-depth understanding of the transition mechanisms. In the case of decreasing returns, the economy converges towards a stationary stock of human capital which decreases with the severity of the epidemic. In the case of unbounded growth, we recover the main results of Goenka and Liu (2020): the existence of a Balanced Growth Path with a negative impact of disease severity on growth rate. However, in our model, the growth path is only asymptotically balanced and confined within an exponential band during the transition.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"138 ","pages":"Article 102466"},"PeriodicalIF":0.7,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145266843","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Khaled Belkadhi , Hend Ghazzai , Rim Lahmandi-Ayed
{"title":"Basic research and market concentration","authors":"Khaled Belkadhi , Hend Ghazzai , Rim Lahmandi-Ayed","doi":"10.1016/j.mathsocsci.2025.102472","DOIUrl":"10.1016/j.mathsocsci.2025.102472","url":null,"abstract":"<div><div>We introduce a model with the possibility of investing in basic research prior to non-cooperative applied research and quantity competition, comparing two scenarios: Centralized (C) where the State invests in basic research and makes the results available to firms; and Decentralized (D) where firms have to invest in basic research. Total basic research effort acts as a multiplier of firms’ effort in applied research in the reduction of production costs. Interestingly, (i) there is no upper-bound on the number of viable firms under both scenarios, while there is a lower-bound on that number under (D) scenario; (ii) it may be socially optimal under (C) or (D) to have a finite number of firms; (iii) the firms’ expenses in research is either increasing or inverted U-shaped with market concentration, as in a large part of existing empirical literature; (iv) when the basic research cost is low, under (C), it is possible to implement the first best (the optimal number of firms) and a firm’s taxation to fund the optimal basic research expenses in an acceptable way to firms relative to the (D) scenario. When the basic research cost is intermediate, it is possible to implement the second best number of firms defined to be as the one allowing to cover the basic research expenses in an acceptable way to firms relative to the (D) scenario.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"138 ","pages":"Article 102472"},"PeriodicalIF":0.7,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145416897","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Massimiliano Landi , Domenico Menicucci , Domenico Colucci
{"title":"Competition through entry fees between auctions for differentiated objects","authors":"Massimiliano Landi , Domenico Menicucci , Domenico Colucci","doi":"10.1016/j.mathsocsci.2025.102476","DOIUrl":"10.1016/j.mathsocsci.2025.102476","url":null,"abstract":"<div><div>This paper considers two competing auctions with objects differentiated according to the random utility framework introduced in Perloff and Salop (1985): bidders privately observe their values for the two objects, and values are ex ante i.i.d. across objects and across bidders. For the case of uniform distribution of values, we show that competition under entry fees is less intense than competition under reserve prices in the sense that sellers are better off, and bidders are worse off when competition takes place with entry fees rather than under reserve prices. The key difference between the two settings is that undercutting under entry fees is less effective as a business stealing tool than under reserve prices. This reduces each seller’s incentive to undercut, and in turn increases sellers’ equilibrium revenues. This result contrasts with the equivalence between reserve prices and entry fees in a standard one-object monopoly auction.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"138 ","pages":"Article 102476"},"PeriodicalIF":0.7,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145578708","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A nonatomic game involving incomplete information and general ambiguity attitudes","authors":"Jian Yang","doi":"10.1016/j.mathsocsci.2025.102435","DOIUrl":"10.1016/j.mathsocsci.2025.102435","url":null,"abstract":"<div><div>We consider a nonatomic game involving incomplete information. On top of a player’s own action and the joint distribution of other players’ traits and actions, also influencing the player’s return is a state of the world that incorporates uncertain factors external to all players. Non-exact knowledge about the latter is embedded in a player’s signal. When other players adopt strategies that amount to signal-based action distributions, a given player’s action would be guided by her own preference on the vector made up of the distributions on returns that she anticipates to encounter under all potential states allowed by her signal. There can be two equilibrium notions; namely, the action- and distribution-based ones that depend on whether a player controls individual actions or merely their distributions. Besides the existence of equilibria, we also study relationships between the two equilibrium notions for various special cases. Furthermore, the nonatomic game is shown to approximate its finite counterparts.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"138 ","pages":"Article 102435"},"PeriodicalIF":0.7,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145005423","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}