MSM Research seminar

During the winter term the research seminar takes place in room LB 338 on Wednesdays from 5:00 p.m. to 6:00 p.m.

Wintersemester 2019/20

30.10.2019 Prof. Dr. Sebastian Kranz, Universität Ulm
  Reconciliating Relational Contracting and Hold-up: A Model of Repeated Negotiations

Game theoretic analysis of relational contracts typically studies Pareto-optimal equilibria of infinitely repeated games. We illustrate with several examples how this equilibrium selection rules out very intuitive hold-up concerns. This becomes apparent only when moving away from the stationary environment of repeated games to more general discounted stochastic games that can have different states and can accomodate actions with long run consequences, like investments. The key problem is that Pareto-optimal equilibria, even if satisfying renegotiation-proofness, don't properly reflect plausible concerns of how today's actions affect future bargaining positions within the relationship. We propose and characterize an alternative equilibrium selection based on the explicit notion that continuation play is repeatedly newly negotiated in a relationship. We illustrate how the concept naturally combines the trade-offs from relational contracting and hold-up concerns.
13.11.2019 Prof. Guanghua Wan, Fudan University, Shanghai (China)
  Inequality and Domestic Consumption in China: A Puzzle and An Explanation

Contrary to conventional wisdom and perception, income inequality is found to be positively correlated with per capita consumption in China. This puzzle implies that fiscal policies or transfers, which aims at reducing inequality and boosting consumption, have contributed to decreased domestic demand and the slowdown of the Chinese economy. Using province panel data, we show that: (1) Income inequality is positively correlated with per capita consumption and this correlation is robust; (2) When inequality is decomposed into a between urban-rural component and a within component, only the between component is significant, implying that the puzzle may be attributable to urban-rural segregation; (3) Sub-sample estimations using urban and rural data separately show that income inequality and consumption are negatively correlated, confirming the segregation hypothesis; (4) Using urbanization rate as an indicator of urban-rural integration, inequality and urbanization (the opposite of segregation) is found to exhibit an inverted U pattern, further supporting the segregation hypothesis; (5) Finally, to investigate the mechanism underlying the relationship between segregation and consumption, we estimate the marginal propensities to consume (MPC) for rural and urban residents. It is found that urban MPC is significantly higher than rural MPC, implying a higher saving rate of rural residents despite their lower income relative to the urban residents. This lower MPC is known to be caused by the serious urban-rural segregation which limits the choice set of consumption items and increases the risks faced by rural residents, resulting in the positive relationship between income inequality and consumption. Abolishing the hukou system and all kinds of discriminations against rural residents are suggested in order to resolve this puzzle, which is imperative for preventing further slowdown of the Chinese economy and offsetting the impacts of the de-globalization wave including the Sino-US trade war.
20.11.2019 Dr. Thomas Maindl, Universität Wien (Austria)
  Optimal locations of multiple tower cranes at a construction site considering operating cost and material demand and supply

The choice of suitable tower crane configurations and locations may affect the duration and costs of construction processes considerably. The distances between the tower crane locations and material supply and demand points determine the transportation times of material and hence directly impact the operating costs. At the same time, these distances affect the required crane configurations in terms of maximum load moment and height. Here, a mixed-integer linear program (MILP) is presented that selects the optimal locations of multiple tower cranes, selects their required types and configurations, and allocates material supply points. The decision is driven by a given product demand pattern and operating costs that depend on the crane types. The specific model was developed for designing a construction site for mid-rise buildings requiring two tower cranes. While configuration-dependent crane rental costs are not part of the implemented use case, they can easily be added to the model.
04.12.2019 no seminar
11.12.2019 no seminar
18.12.2019 Dr. Thomas Gall, University of Southampton (UK)
  The value of public information in vertically differentiated markets

Generating public information about vertically differentiated products increases expected vertical differentiation and softens competition. We show that this will induce firms to overinvest (underinvest) in information generation, if the deadweight loss in the subsequent market equilibrium is high (low). Moreover, information generation by one firm has a positive externality on the other firm. It follows that coordination (e.g. via industry associations) increases information generation. When product qualities are endogenous, information generation may prevent quality degradation and thus have an additional social benefit.
08.01.2020 Prof. Dr. Denis Belomestny, Universität Duisburg-Essen
  Approximative dynamic programming

In his talk Prof. Belomestny will discuss classical results and new developments in approximative dynamic programming. In particular such topics as deep approximative dynamic programming, approximative reinforcement learning and uncertainty quantification will be discussed and illustrated by several examples. Special attention will be paid to convergence and complexity analysis of the presented algorithms.
15.01.2020 Prof. Dr. Rob van der Mei, Centrum Wiskunde & Informatica Amsterdam (NL)
22.01.2020 Dr. Markus Weinmann, Erasmus University Rotterdam (NL)
29.01.2020 Prof. Dr. Jens Brunner, Universität Augsburg

Past events

You can find past events here.