We study how a reduction in communication cost affects equilibrium diversity (in expertise) in hiring decisions. The key trade-off is that, while hiring a more diverse team may enlarge the team's pool of knowledge, it also makes communication between the hired experts more challenging. Equilibrium diversity balances this trade-off. We find that equilibrium diversity may exhibit a U-shape relationship with communication cost, reaching its lowest point at moderate cost values, where experts' incentives to communicate are most sensitive to changes in diversity.

All versions

Two agents announce the state they consider most likely infinitely many times. A small departure from common belief in rationality can have a severe impact on the belief about the state and on the behavior of an extremist: while initial periods of disagreement produce a temporary convergence of beliefs, prolonged disagreement induces reversion towards the initial belief. The mechanism is simple: the longer the counterpart insists on the opposite view, the more the extremist doubts that the counterpart is intellectually capable and honest, and therefore the more he discounts the counterpart's opinion.

supersedes Disagreement Under Almost Common Knowledge of Rationality     ICEF Working Paper WP9/2020/01     All versions

A rational principal delegates learning to an overconfident agent who overestimates the precision of the information he collects. The principal chooses between two contracts: commitment, in which the agent commits to the duration of learning in advance, and flexible, in which the agent decides when to stop learning in real time. When the agent is sufficiently overconfident, the principal optimally ties the agent's hands by offering him the commitment contract. When the principal can choose both the contract and the agent's level of overconfidence, selecting the rational agent is suboptimal when the cost of learning is sufficiently high.

All versions

An agent learns in continuous time from two information sources, each associated with a hypothesis. If a hypothesis is true, the associated source confirms it at a positive rate. False hypotheses are never confirmed. Among the two hypotheses, either exactly one is true or both are false. The agent’s optimal learning strategy has two phases. During the first phase, the agent follows his beliefs; that is, at each moment, he learns from the source associated with the most likely hypothesis according to his current beliefs. During the second phase, he focuses on excluding the least likely but more important hypothesis.

ICEF Working Paper WP9/2019/05   All versions

A hider publicly commits to the number of seekers and then privately gets involved in a story, which may be compromising. Each seeker aims to be the first to learn and report a compromising story. The seekers learn the story privately and in continuous time. With more seekers, the hider's story gets revealed at a faster rate, but each seeker gets discouraged and ceases learning more quickly. To reduce the probability of a compromising report, the hider may optimally choose infinitely many seekers. Nevertheless, the hider unambiguously benefits from making it harder for each seeker to learn her story.

All versions

We study the effect of a merger on R&D activity in a dynamic model with uncertainty about the feasibility of innovation. The merger has three effects: it may reduce the number of follow-up innovations (cannibalization effect), increase the probability of the first game-changer innovation (appropriability effect), and bring this innovation forward in time (informational effect). The model suggests mergers are more desirable when R&D outcomes are highly uncertain, but less so when the innovation path is clearer. A surprising policy implication is that the benefit of the merger may be higher if the first and subsequent innovations are closer substitutes.

Presented: Yasin conference 2025, University of Bristol, University of Graz, Tor Vergata University of Rome, Manchester University, SWUFE, BSE Summer Forum 2024, PET 2023, HSE (Moscow and St Petersburg), University of Warwick, CMA Durham workshop 2023, Pennsylvania State University, Johns Hopkins University, University of Nottingham, NERA, SAET 2019 

We investigate how optimal cognitive diversity depends on the nature of production and the objective employed. When the output of the most productive worker becomes relatively more important, with a utilitarian objective, optimal diversity weakly increases. However, with a Rawlsian objective, which captures the preferences of a public service provider, a regulated firm, or a very risk averse manager, optimal diversity might decrease. Moreover, optimal diversity is weakly higher with the Rawlsian objective than with the utilitarian one, which suggests that high diversity in teams can be achieved by imposing a minimal satisfactory service requirement rather than micromanaging diversity directly.

Presented: IIOC 2024, AETW 2024, APIOC 2023, New Zealand Microeconomics Study Group Meeting 2023, Lancaster Game Theory conference 2023, SAET 2023, HSE, University of Sydney

A company uses consumer data from product sales to offer personalized insurance. When consumers are predominantly of high risk, data linkage between product and insurance markets benefits both high- and low-risk consumers by generating efficiency gains in the insurance market, which are partially passed on to consumers via the product market. When consumers are predominantly of low risk, data linkage can harm both types. High-risk consumers lose rents in the insurance market, while low-risk consumers face negative externalities from sophisticated high-risk consumers via the product market.

Presented: VSET, RHUL, MaCCI 2025, Manchester University, University of Graz, Compass Lexecon, ITAM, CMA, EARIE 2024, ESEM 2024, CMID 2024, CRESSE 2024, PET 2024, HSE, University of Glasgow, IIOC 2024, University of Essex, Bonn GSE, Bonn-Mannheim workshop, Johns Hopkins University, UL City, Yasin conference 2023, NES conference 2022, Lancaster Game Theory conference 2022, SAET 2022, UL Birkbeck, Digital Economy Network workshop 2022

Presentation video (30 min)     Slides

A Sender must disclose a string of privately observed signals to a receiver with listening costs.  The Sender can choose the order of the signals.  We show that a strategy of alternating between favourable and unfavourable signals can dominate a strategy of ``front-loading" favourable signals.

The Effect of Correlation and Payoff Interdependence on R&D   joint with Arina Nikandrova 

The Effect of Mergers on Innovation: Insights from a Two-Avenue Model   joint with Kaustav Das and Arina Nikandrova  

Cutting Back to Move Forward: Optimal Knowledge Transfer Scheme   joint with Doruk Cetemen, Chiara Margaria and Arina Nikandrova 

• 2 July 2025

The 24th Annual Society for the Advancement of Economic Theory (SAET) Conference (Ischia, Italy)

The Effect of Mergers on Innovation slides

• 23 June 2025

International Conference on Public Economic Theory (PET 2025) (Lisbon, Portugal) 

Diversity in Teams slides

• 18 June 2025

The Lisbon Meetings in Game Theory and Applications #14 (LM 2025) (Lisbon, Portugal) 

Data Linkage between Markets: Hidden Dangers and Unexpected Benefits slides

• 10 June 2025

The Centre for Competition Policy (CCP) Annual Conference (London, UK)

The Effect of Mergers on Innovation slides

presented by Kaustav Das

• 3 June 2025

Workshop on Interactive Beliefs and Learning, Paris Game Theory Festival (Paris, France) 

Cutting Back to Move Forward: How Reduced Training Curbs Procrastination slides

presented by Arina Nikandrova

• 3 June 2025

The 13th Oligo Workshop (Cambridge Judge Business School, UK)

The Effect of Mergers on Innovation slides

presented by Kaustav Das

• 1 May 2025

Virtual Seminar in Economic Theory (VSET) (online) 

Data Linkage between Markets: Hidden Dangers and Unexpected Benefits slides video

presented by Arina Nikandrova

• 16 April 2025

XXV Yasin (April) International Academic Conference on Economic and Social Development (HSE University, Moscow)

The Effect of Mergers on Innovation slides

• 27 March 2025

Royal Holloway, University of London, UK 

Data Linkage between Markets: Hidden Dangers and Unexpected Benefits slides

presented by Arina Nikandrova

• 25 March 2025

University of Bristol, UK

The Effect of Mergers on Innovation slides

presented by Arina Nikandrova

• 21 March 2025

Mannheim Centre for Competition and Innovation (MaCCI) Annual Conference (Mannheim, Germany)

Data Linkage between Markets: Hidden Dangers and Unexpected Benefits slides

presented by Claudia Herresthal

• 7 March 2025

Game Theory Workshop, University of Graz, Austria

The Effect of Mergers on Innovation slides

• 5 March 2025

Noemi Pace Seminar Series, University of Rome Tor Vergata, Italy

The Effect of Mergers on Innovation slides

• 27 November 2024

Manchester University, UK

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Claudia Herresthal

• 13 November 2024

Manchester University, UK

The Effect of Mergers on Innovation slides

presented by Arina Nikandrova

• 5 November 2024

University of Graz, Austria

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 16 October 2024

RIEM-SWUFE / ICEF-HSE Joint Workshop: Financial and Economic Challenges in Emerging Economies (Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China)

The Effect of Mergers on Innovation slides

• 9 October 2024

Compass Lexecon consulting firm (online)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 27 September 2024

ITAM, Mexico

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 10 September 2024

Competition and Markets Authority (CMA) Seminar (London, UK)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 1 September 2024

European Association for Research in Industrial Economics (EARIE 2024) (University of Amsterdam, Amsterdam, Netherlands)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Claudia Herresthal

• 29 August 2024

The 76th European meeting of the Econometric Society (ESEM, within EEA-ESEM Congress) (Erasmus School of Economics, Rotterdam, Netherlands)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Claudia Herresthal

• 19 August 2024

The 7th World Congress of the Game Theory Society (GAMES 2024) (Peking University, Beijing, China)

The Effect of State Correlation and Payoff Interdependence on R&D slides

• 9 July 2024

The 2024 Conference on Mechanism and Institution Design (CMID 2024) (Corvinus University of Budapest, Budapest, Hungary)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

• 5 July 2024

The 18th International Conference on Competition and Regulation (CRESSE 2024 Conference) (Chania, Crete)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 17 June 2024

Workshop on Economics of Science and Innovation, BSE Summer Forum (Barcelona, Spain)

The Effect of Mergers on Innovation slides

• 10 June 2024

The 2024 International Conference on Public Economic Theory (PET 2024) (Lyon, France)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

• 31 May 2024

The 3rd ICEF-FES-NES Workshop in Microeconomic Theory (HSE University, Moscow)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

• 28 May 2024

Adam Smith Business School, University of Glasgow, UK

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 5 May 2024

The 22nd Annual International Industrial Organization Conference (IIOC 2024) (Boston, MA, US)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 4 May 2024

The 22nd Annual International Industrial Organization Conference (IIOC 2024) (Boston, MA, US)

Diversity in Teams slides

presented by Vladimir Smirnov

• 18 March 2024

University of Essex, UK

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 9 February 2024

The 41st Australasian Economic Theory Workshop (AETW2024) (University of Melbourne, Australia)

Diversity in Teams slides

presented by Vladimir Smirnov

• 11 January 2024

The 2023 International Conference on Public Economic Theory (PET 2023) (Santiago, Chile)

The Effect of Mergers on Innovations slides

• 9 January 2024

The 23rd Annual Society for the Advancement of Economic Theory (SAET) Conference (Santiago, Chile)

The Effect of State Correlation and Payoff Interdependence on R&D slides

• 16 December 2023

Asia-Pacific Industrial Organization Conference (APIOC) 2023 (Hong Kong University of Science and Technology)

Diversity in Teams slides

presented by Andrew Wait

• 4 December 2023

Game Theory Seminar, University of Graz, Austria

Ordering Data to Persuade

presented by Steven Kivinen

• 1 December 2023

Second Workshop in Information Economics (HSE University, Moscow)

The Effect of Mergers on Innovations slides

• 23 November 2023

University of Warwick, UK

The Effect of Mergers on Innovations slides

presented by Arina Nikandrova

• 20 November 2023

The 93rd Annual Meeting of the Southern Economic Association — SEA conference, session 3.A.03 Theory: Information V (New Orleans, LA, US)

Does Reducing Communication Barriers Promote Diversity? slides

presented by Miaomiao Dong

• 8 November 2023

New Zealand Microeconomics Study Group Meeting (University of Otago, New Zealand)

Diversity in Teams slides

presented by Vladimir Smirnov

• 8 November 2023

Bonn Graduate School of Economics (BGSE) lunch workshop (Germany)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Claudia Herresthal

• 8 November 2023

Specialist Seminar at the University of Edinburgh, UK

Does Reducing Communication Barriers Promote Diversity? slides

• 7 November 2023

Microtheory Seminar Series at Adam Smith Business School, University of Glasgow, UK

Does Reducing Communication Barriers Promote Diversity? slides

• 7 November 2023

CMA Durham Workshop (Durham University Business School, UK)

The Effect of Mergers on Innovations slides

presented by Arina Nikandrova

• 3 November 2023

The 9th Lancaster Game Theory Conference (Lancaster University, UK)

Diversity in Teams slides

• 1 November 2023

University of Leicester Business School, UK

Does Reducing Communication Barriers Promote Diversity? slides

• 31 October 2023

University of London, City, UK

Does Reducing Communication Barriers Promote Diversity? slides

• 20 October 2023

The 12th CRC Retreat – Bonn-Mannheim Workshop (Germany)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Claudia Herresthal

• 20 September 2023

International Laboratory of Game Theory and Decision Making, HSE University, Saint Petersburg, Russia

The Effect of Mergers on Innovations slides

• 13 September 2023

Pennsylvania State University, PA, US

The Effect of Mergers on Innovations slides

presented by Arina Nikandrova

• 11 September 2023

Johns Hopkins University, Baltimore, MD, US

The Effect of Mergers on Innovations slides

presented by Arina Nikandrova

• 8 September 2023

Social and Political Economy Conference Series: Data, Markets, and Privacy (Johns Hopkins University, Baltimore, MD, US)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 18 July 2023

The 22nd Annual Society for the Advancement of Economic Theory (SAET) Conference (Paris, France)

Knowledge Transfers slides

presented by Arina Nikandrova

• 17 July 2023

The 22nd Annual Society for the Advancement of Economic Theory (SAET) Conference (Paris, France)

Diversity in Teams slides

• 6 July 2023

Centre for Research in Behavioural Science (CRIBS) Workshop (University of Nottingham, UK)

The Effect of Mergers on Innovation slides

presented by Kaustav Das

• 20 June 2023

NERA

The Effect of Mergers on Innovation slides

presented by Arina Nikandrova

• 9 June 2023

Workshop on Competition and Regulation in Digital Markets (UL City, UK)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 1 June 2023

Second FES-ICEF-NES Workshop in Microeconomic Theory (HSE University, Moscow)

Diversity in Teams slides

• 14 April 2023

XXIV Yasin (April) International Academic Conference on Economic and Social Development (HSE University, Moscow)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

• 6 December 2022

Second Workshop on Contracts, Incentives and Information (CEPR event; Collegio Carlo Alberto, Turin, Italy)

Imposing Commitment to Rein in Overconfidence in Learning slides

presented by Arina Nikandrova

• 5 December 2022

NES30 Academic Conference in Memory of Gur Ofer (online)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

• 4 November 2022

The 8th Lancaster Game Theory Conference (Lancaster University, UK)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

presented by Arina Nikandrova

• 21 October 2022

Workshop in Information Economics in Higher School of Economics (Moscow)

Data Linkage between Markets: Does the Emergence of an Informed Insurer Cause Consumer Harm? slides

• 16 July 2022

The 21th Annual Society for the Advancement of Economic Theory (SAET) Conference (Australian National University, Canberra, Australia, Online)

Does Reducing Communication Barriers Promote Diversity? slides

• 16 July 2022

The 21th Annual Society for the Advancement of Economic Theory (SAET) Conference (Australian National University, Canberra, Australia, Online)

The Effect of Data-Driven Mergers on Insurance Markets slides

presented by Arina Nikandrova

• 10 June 2022

Conference in Birkbeck, University of London

The Effect of Data-Driven Mergers on Insurance Markets slides

presented by Arina Nikandrova

• 8 June 2022

Economic Theory Workshop (City, University of London)

The Dark Side of Transparency: When Hiding in Plain Sight Works slides

presented by Arina Nikandrova 

• 18 May 2022

Micro Theory Workshop (HSE Moscow, Online)

The Effect of Data-Driven Mergers on Insurance Markets slides

• 8 April 2022

Pennsylvania Economic Theory Conference (PETCO) (PennState University, PA, US)

Diversity and Communication slides

presented by Miaomiao Dong

• 28 March 2022

Digital Economy Network Workshop (University of East Anglia, Norwich, UK, Online)

The Effect of Data-Driven Mergers on Insurance Markets slides

presented by Arina Nikandrova

• 23 February 2022

PennState Theory Workshop

Diversity and Communication slides

presented by Miaomiao Dong

• 4 December 2021

The 8th Annual Economic Theory Conference (Arizona State University, AZ, US)

Diversity and Communication slides

presented by Miaomiao Dong

• 27 October 2021

City, University of London

Imposing Commitment to Rein in Overconfidence in Learning slides

presented by Arina Nikandrova

• 14 October 2021

ICEF-FES-NES Micro Theory Workshop in Higher School of Economics (Moscow)

Imposing Commitment to Rein in Overconfidence in Learning slides

• 1 September 2021

Learning, Evolution and Games Conference (LEG) (Online)

Privacy Paradox: When Hiding in Plain Sight Works slides

• 22 July 2021

The 6th World Congress of the Game Theory Society (GAMES) (Budapest, Hungary, Online)

Privacy Paradox: When Hiding in Plain Sight Works slides

• 30 June 2021

WEAI Virtual 96th Annual Conference

Implications of Overconfidence on Information Investment slides

• 13 June 2021

The 20th Annual Society for the Advancement of Economic Theory (SAET) Conference (Seoul, South Korea, Online)

Privacy Paradox: When Hiding in Plain Sight Works slides

• 3 June 2021

NRU Higher School of Economics (Moscow, Online)

Privacy Paradox: When Does Hiding in Plain Sight Work? slides

• 9 February 2021

Indian Institute of Technology Bombay (Online)

Privacy Paradox: When Does Hiding in Plain Sight Work? slides

• 23 December 2020

NRU Higher School of Economics (Moscow, Online)

Diversity and Communication slides

• 15 October 2020

City, University of London (Online)

Privacy Paradox: When Does Hiding in Plain Sight Work? slides

presented by Arina Nikandrova 

• August 2020

The 12th World Congress of the Econometric Society (Bocconi University, Online)

Privacy Paradox: When Does Hiding in Plain Sight Work? slides

• 25 November 2019

The 89th Annual Meeting of the Southern Economic Association (Fort Lauderdale, FL, US)

Privacy Paradox: When Does Hiding in Plain Sight Work? slides

• 22 November 2019

ITAM (Mexico)

Privacy Paradox: When Does Hiding in Plain Sight Work? slides

• 31 October 2019

NRU Higher School of Economics (Moscow)

Disagreement Under Almost Common Knowledge of Rationality slides

presented by Emiliano Catonini 

• 31 October 2019

NRU Higher School of Economics (Moscow)

Privacy Paradox: When Does Hiding in Plain Sight Work? slides

• 17 July 2019

The 30th International Conference on Game Theory (Stony Brook University, NY, US)

When Should We Care About Privacy? slides

• 1 July 2019

The 19th Annual Society for the Advancement of Economic Theory (SAET) Conference (Ischia, Italy)

Disagreement Under Almost Common Knowledge of Rationality slides

• 4 April 2019

NRU Higher School of Economics (Moscow)

When Should We Care About Privacy? Information Collection in Games slides

• 13 December 2018

NRU Higher School of Economics (Saint Petersburg)

Implications of Overconfidence on Information Investment slides

• 5 December 2018

NRU Higher School of Economics (Moscow)

Endogenous Choice Between Ultimatum and Dictator Games: Experimental Evidence slides

• 19 November 2018

The 88th Annual Meeting of the Southern Economic Association (Washington, DC, US)

Endogenous Choice Between Ultimatum and Dictator Games: Experimental Evidence slides

• 2 November 2018

The 4th Lancaster Game Theory Conference (Lancaster University, UK)

Cognitive Hierarchical Model in Networks slides

• 1 November 2018

Birkbeck, University of London

Endogenous Choice Between Ultimatum and Dictator Games: Experimental Evidence slides

• 27 October 2018

The 10th Lisbon Meeting in Game Theory and Applications (Lisbon School of Economics and Management, Portugal)

Cognitive Hierarchical Model in Networks slides

• 27 August 2018

European Summer Meeting of the Econometric Society (University of Cologne, Germany)

Dynamic Choice of Information Sources slides

• 18 July 2018

The 29th International Conference on Game Theory (Stony Brook University, NY, US)

Cognitive Hierarchical Model in Networks slides

• 21 June 2018

North American Summer Meeting of the Econometric Society (UC Davis, CA, US)

Dynamic Choice of Information Sources slides

• 12 June 2018

The 18th Annual Society for the Advancement of Economic Theory (SAET) Conference (Academia Sinica, Taipei, Taiwan)

Implications of Overconfidence on Information Investment slides

• 31 May 2018

Toulouse School of Economics

Dynamic Choice of Information Sources slides

• 18 November 2017

The 3rd Lancaster Game Theory Conference (Lancaster University, UK)

Implications of Overconfidence on Information Investment slides

• 13 November 2017

Cambridge University

Dynamic Choice of Information Sources slides

• 9 November 2017

University of Warwick

Dynamic Choice of Information Sources slides

• 7 November 2017

Oxford University (Nuffield College)

Dynamic Choice of Information Sources slides

• 20 July 2017

The 28th International Conference on Game Theory (Stony Brook University, NY, US)

Dynamic Choice of Information Sources slides

• 24 February 2017

Carnegie Mellon University (Tepper School of Business)

Dynamic Choice of Information Sources slides

• 22 December 2016

NRU Higher School of Economics (Moscow)

Dynamic Choice of Information Sources slides

• 4 March 2016

The 18th Southwest Economic Theory (SWET) Conference (UC Riverside, CA, US)

Selective Exposure to Information slides

Are People Subject to Persuasion Bias? Test of DeGroot Model   joint with Li Song     September 27, 2017 

Stochastic Choice in Criterion Space     May 30, 2014