Working Papers

These papers are working drafts of research which often appear in final form in academic journals. The published versions may differ from the working versions provided here.

SSRN Research Paper Series

The Social Science Research Network’s Research Paper Series includes working papers produced by Stanford GSB the Rock Center.

You may search for authors and topics and download copies of the work there.

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Improving Match Rates in Dating Markets Through Assortment Optimization

Ignacio Ríos, Daniela Saban, Fanyin Zheng
September2020

Problem definition: We study how online platforms can leverage the behavioral considerations of their users to improve their assortment decisions. Motivated by our collaboration with a dating company, we study how a platform…

Policy Learning with Observational Data

Susan Athey, Stefan Wager
September2020

In many areas, practitioners seek to use observational data to learn a treatment assignment policy that satisfies application-specific constraints, such as budget, fairness, simplicity, or other functional form constraints. For example, policies…

Third-Degree Price Discrimination versus Uniform Pricing

Dirk Bergemann, Francisco Castro, Gabriel Weintraub
June302020

We compare the revenue of the optimal third-degree price discrimination policy against a uniform pricing policy. A uniform pricing policy offers the same price to all segments of the market. Our main result establishes that for a broad class of…

Mean Field Equilibrium: Uniqueness, Existence, and Comparative Statics

Bar Light, Gabriel Weintraub
June42020

The standard solution concept for stochastic games is Markov perfect equilibrium (MPE); however, its computation becomes intractable as the number of players increases. Instead, we consider mean field equilibrium (MFE) that has been popularized…

Information Disclosure in Two-Sided Platforms: Optimizing for Supply

Kostas Bimpikis, Yiangos Papanastasiou, Wenchang Zhang
June2020

While information design has gained significant attention in the recent literature as a tool for shaping consumers’ purchase behavior, little is known about its use and implications in two-sided marketplaces, where both supply and demand…

Confidence Intervals for Policy Evaluation in Adaptive Experiments

Vitor Hadad, David A. Hirshberg, Ruohan Zhan, Stefan Wager, Susan Athey
February2020

Adaptive experiment designs can dramatically improve statistical efficiency in randomized trials, but they also complicate statistical inference. For example, it is now well known that the sample mean is biased in adaptive trials. Inferential…

Managing Market Thickness in Online B2B Markets

Kostas Bimpikis, Wedad J. Elmaghraby, Ken Moon, Wenchang Zhang
2020

Platforms can obtain sizable returns by operationally managing their market thickness, i.e., the availability of supply-side inventory. Using data from a natural experiment on a major B2B auction platform specializing in the $424 billion…

Procurement Mechanisms for Assortments of Differentiated Products

Daniela Saban, Gabriel Weintraub
August2019

Part of thesis finalist of 2015 INFORMS George Dantzig Dissertation Award. Second place 2015 M&SOM Student Paper Competition

Problem definition: We consider the problem faced by a procurement agency that runs…

Sufficient Representations for Categorical Variables

Jonathan Johannemann, Vitor Hadad, Susan Athey, Stefan Wager
August2019

Many learning algorithms require categorical data to be transformed into real vectors before it can be used as input. Often, categorical variables are encoded as one-hot (or dummy) vectors. However, this mode of representation can be…

The Scope of Sequential Screening with Ex-Post Participation Constraints

Dirk Bergemann, Francisco Castro, Gabriel Weintraub
June182019

We study the classic sequential screening problem in the presence of ex-post participation constraints. We establish necessary and sufficient conditions that determine exhaustively when the optimal selling mechanism is either static or sequential…

Best Arm Identification in Generalized Linear Bandits

Abbas Kazerouni, Lawrence M. Wein
May2019

Submitted to Operations Research

Motivated by drug design, we consider the best-arm identification problem in generalized linear bandits. More specifically, we assume each arm has a vector of covariates, there is an unknown vector…

Synthetic Difference in Differences

Dmitry Arkhangelsky, Susan Athey, David A. Hirshberg, Guido W. Imbens, Stefan Wager
February12019

We present a new perspective on the Synthetic Control (SC) method as a weighted least squares regression estimator with time fixed effects and unit weights. This perspective suggests a generalization with two way (both unit and time) fixed…

Offline Multi-Action Policy Learning: Generalization and Optimization

Susan Athey, Zhengyuan Zhou, Stefan Wager
October102018

In many settings, a decision-maker wishes to learn a rule, or policy, that maps from observable characteristics of an individual to an action. Examples include selecting offers, prices, advertisements, or emails to send to consumers, as well as…

Optimal Commissions and Subscriptions in Networked Markets

John R. Birge, Ozan Candogan, Hongfan Chen, Daniela Saban
September302018

Two salient features of most online platforms are that they do not dictate the transaction prices, and use commissions/subscriptions for extracting revenues. We consider a platform that charges commission rates and subscription fees to sellers…

Dynamic Mechanism Design with Budget Constrained Buyers Under Limited Commitment

Santiago Balseiro, Omar Besbes, Gabriel Weintraub
September182018

We study the dynamic mechanism design problem of a seller that repeatedly auctions independent items over a discrete time horizon to buyers that face a cumulative budget constraint. A driving motivation behind our model is the emergence of real-…

Increased Transparency in Procurement: The Role of Peer-Effects

Ruth Beer, Ignacio Rios, Daniela Saban
August2018

Motivated by recent initiatives to increase transparency in procurement, we study the effects of disclosing information about previous purchases in a setting where an organization delegates its purchasing decisions to its employees. When…

Sustaining Rainforests and Smallholders by Eliminating Payment Delay in a Commodity Supply Chain—It takes a Village

Joann F. de Zegher, Dan A. Iancu, Erica Plambeck
June2018

Millions of poor smallholder farmers produce global commodities, often through illegal deforestation. Multinational commodity buyers have committed to halt illegal deforestation and improve farmers’ livelihoods in their supply chains. We propose…

Inducing Exploration in Service Platforms

Kostas Bimpikis, Yiangos Papanastasiou
May222018

Crowd-sourced content in the form of online product reviews or recommendations is an integral feature of most Internet-based service platforms and marketplaces, including Yelp, TripAdvisor, Netflix, and Amazon. Customers may find such information…

Spatial Pricing in Ride-Sharing Networks

Kostas Bimpikis, Ozan Candogan, Daniela Saban
January112018

We explore spatial price discrimination in the context of a ride-sharing platform that serves a network of locations. Riders are heterogeneous in terms of their destination preferences and their willingness to pay for receiving service. Drivers…

Multi-Tiered Supply Chain Risk Management

Georg Schorpp, Feryao Erhun, Hau L. Lee
January2018

We study contracting for a three-tier supply chain consisting of a buyer, a supplier, and a sub-supplier where disruptions of random length occur at the sub-supplier. As is common in supply chains, the buyer has a direct relationship with the…