Luciano I de Castro

Luciano I de Castro

Economic Theory, especially Decision, Game & Auction Theory

I have worked in different areas of economic theory, including auction theory, game theory, decision theory and market design. Some of those papers have established equilibrium existence in some auctions and games. I also have papers studying economic aspects of equilibria in economies in which consumers have some kind of special preference (not the standard expected utility).

Publications on Economic Theory

Corrigendum to “Existence of Equilibrium in Single and Double Private Value AuctionsEconometrica, vol. 74, 6,  November 2006, 1723-4.

Non-monotonicities and the all-pay auction tie-breaking rule”, Economic Theory vol. 35, 4, June 2008, 407-440.  (Co-authors: A. Araujo and H. Moreira.)

Product Definition for Future Electricity Supply Auctions: The 2006 Illinois Experience,” The Electricity Journal, vol. 21, 7, 50-62, Aug.-Sept. 2008. (Co-authors: Matias Negrete-Pincetic and George Gross.)

Pure Strategy Equilibria of Single and Double-Auctions with Interdependent Values”, Games and Economic Behavior, vol. 65, 1, 25-48, January 2009. (Co-author: A. Araujo.)

Response to Cavichi and Lemon: Our Analysis was ThoroughThe Electricity Journal, vol. 22, 1, 5-12, Jan.-Feb. 2009. (Co-authors: Matias Negrete-Pincetic and George Gross.)

Characterization of Bidding Behavior in Multi-Unit Auctions,” Journal of Mathematical Economics, 45, 559-575, 2009. (Co-author A. Riascos.)

How to translate results from auctions to procurement,” Economic Letters, vol. 106 (2), p. 115-118, 2010. (Co-author: M. Angeles de Frutos.)

Testing Affiliation in Private-Values Models of First-Price Auctions Using Grid Distributions,” Annals of Applied Statistics, vol. 4 (4), 2073—2098, 2010.  (Co-author: Harry Paarsch.)

Equilibrium Existence and Approximation of Regular Discontinuous Games”, Economic Theory, 48, 67-85, 2011.

Tougher Educational Exam Leading to Worse Selection,” Economics: The Open-Access, Open-Assessment E-Journal, v. 5, 2011-17, 2011. (Co-author: Eduardo Andrade)

Ambiguity aversion and Trade”, Economic Theory, 48, 243-273, 2011. (Co-author: A. Chateauneuf)

The Economics of the Smart Grid,” Proceedings of IEEE 49th Annual Allerton Conference on Communication, Control, and Computing, 1294-1301, 2011. (Co-author: Joisa Dutra)

Core and Equilibria under ambiguity,” Economic Theory, 48, 519-548, 2011. (Co-authors: M. Pesce and N. Yannelis).

Subjective Probability,” Wiley Encyclopedia of Operations Research and Management Science, 2011. (Co-author: Nabil Al-Najjar.)

Equilibria Existence and Characterization in Auctions: Achievements and Open Questions,” Journal of Economic Surveys, 26(5), 911-932, 2012. (Co-author: Dan Karney.)

Prediction Markets To Forecast Electricity Demand,Proceedings of IEEE 50th Annual Allerton Conference on Communication, Control, and Computing, 1097-1104, 2012. (Co-author: Peter Cramton)

Paying for the Smart Grid,” Energy Economics, 40 (supplement 1), S74-S84, 2013. (Co-author: Joisa Dutra)

An Interpretation of Ellsberg’s Paradox Based on Information and Incompleteness,” Economic Theory Bulletin, 1 (2), 139-144, 2013. (co-author: Nicholas Yannelis)

Parametric Representation of Preferences,” Journal of Economic Theory, 150, 642-667, 2014. (Co-author: Nabil Al-Najjar)

Free entry versus socially optimal entry.Journal of Economic Theory, 154, 112-125, 2014. (Co-authors: Rabah Amir and Leonidas Koutsougeras)

Electricity supply auctions: Understanding the consequences of the product definition,” International Journal of Electrical Power and Energy Systems, 64, January 2015, Pages 285-292, January 2015. (co-authors: M. Negrete-Pincetic, and H. Pulgar-Painemal)

Expected utility or prospect theory: Which better fits agent-based modeling of markets?,” Journal of Computational Science, 17 (1), 97-102, 2016. (co-authors: Paulo André Lima de Castro and Anderson R. B. Teodoro).

Transition to Centralized Unit Commitment: An Econometric Analysis of Colombia’s Experience,” The Energy Journal, 37 (3), 271-291 (2016) (Co-authors: Alvaro Riascos, Miguel Bernal, Shmuel Oren)

Implementation under Ambiguity,Games and Economic Behavior, 101 (2017), 20-33. (Co-authors: Nicholas Yannelis and Zhiwei Liu).

Ambiguous implementation: the partition model,” Economic Theory, 63(1), 233- 261 (2017). (Co-authors: Nicholas Yannelis and Zhiwei Liu).

Nash Equilibrium in Games with Quasi-Monotonic Best-Responses,” Journal of Economic Theory, 172, 220-246 (2017). (Co-author: Rabah Amir)

The Economics of the Smart Grid Technological Innovation,” chapter 16 of the Edward Elgar Handbook of Energy Politics, (2018). (Co-authors: Joisa Dutra and Vivian Figer)

Uncertainty, Efficiency and Incentive Compatibility: Ambiguity solves the conflict between efficiency and incentive compatibility,” Journal of Economic Theory, 177, 678-707 (2018).  (co-author: Nicholas Yannelis)

Dynamic Nonlinear Rational Quantile Models,Econometrica,  87, p. 1893-1939 (2019) (co-author: Antonio Galvao)

A new approach to the rational expectations equilibrium: existence, optimality and incentive compatibility,Annals of Finance, 16, 1-61 (2020) (Co-authors: Marialaura Pesce and Nicholas Yannelis).

Static and Dynamic Quantile Preferences,Economic Theory, 73:747-779 (2022). (co-author: Antonio Galvao)

Portfolio Selection in Quantile Utility Models,Annals of Finance, 18, 133-181, (2022). (co-authors: Antonio Galvao, Gabriel Montes-Rojas and Jose Olmo)

Conditional Quantiles: an Order-Theoretical Approach, with Antonio Galvao, Bruno Nunes and Jorge Zubelli, Bernoulli, forthcoming.

All projects