Negatively Correlated Bandits (2008)
We analyze a two-player game of strategic experimentation with two-armed bandits. Each player has to decide in continuous time whether to use a safe arm with a known payoff or a risky arm whose...
Ortalo-Magné, François, Rady, Sven
We propose a life-cycle model of the housing market with a property ladder and a credit constraint. We focus on equilibria which replicate the facts that credit constraints delay some households'...
Strategic Experimentation with Exponential Bandits (2003)
Cripps, Martin, Keller, Godfrey, Rady, Sven
This paper studies a game of strategic experimentation with two-armed bandits whose risky arm might yield a payoff only after some exponentially distributed random time. Because of free-riding, there...
Housing Market Dynamics (2001)
Rady, Sven, Ortalo-Magné, François
This paper presents a dynamic theory of housing market fluctuations. It develops a life-cycle model where households are heterogeneous with respect to income and preferences, and mortgage lending is...
Market experimentation in a dynamic differentiated-goods duopoly (1999)
We study the evolution of prices in a symmetric duopoly where firms are uncertain about the degree of product differentiation. Customers sometimes perceive the products as close substitutes,...
State Prices Implicit in Valuation Formulae for Derivative Securities (1995)
A derivative asset is a security whose payoff is entirely determined by the prices of one or more underlying securities. Call and put options on stocks are simple examples. Since 1973, when Black and...
Housing Market Dynamics: On the Contribution of Income Shocks and Credit Constraint
François Ortalo-Magné, Sven Rady
We propose a life-cycle model of the housing market with a property ladder and a credit constraint. We focus on equilibria which replicate the facts that credit constraints delay some households'...
Heterogeneity within Communities: A Stochastic Model with Tenure Choice
François Ortalo-Magné, Sven Rady
Standard explanations for the income heterogeneity within neighborhoods rely on differences of preferences across households and heterogeneity of the housing stock. We propose an alternative and...
We analyze a two-player game of strategic experimentation with two-armed bandits. Each player has to decide in continuous time whether to use a safe arm with a known payoff or a risky arm whose...