Tuesday, November 14, 2017
4:00 pm

Ulric B. and Evelyn L. Bray Social Sciences Seminar

Searching for Policy Reforms
Avidit Acharya, Assistant Professor, Stanford University

Abstract: We construct a model of policy reform in which two players continually search for Pareto improving policies. The players have imperfect control over the proposals that are considered. Inefficient gridlock takes place due to the difficulty in finding moderate policies. The reform process is path dependent, with early agreements determining long-run outcomes. The process may also be cyclical, as players alternate between being more and less accommodating. Our model provides a noncooperative foundation for the "Raiffa path."

Contact Sabrina De Jaegher sabrina@hss.caltech.edu at 626-395-4228
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