Bruno Strulovici

Professor of Economics  ·  Harvey Kapnick Professor of Business Institutions
Department of Economics
Northwestern University
2211 Campus Drive, Evanston, Illinois 60208, USA
Office: 3225  ·  Tel: 847-491-8233
Bruno Strulovici

Curriculum Vitae

↓ Download CV (PDF)

Teaching

Economics 335 — Political Economics Syllabus
Economics 412 — Dynamic Methods for Economics Syllabus
Economics 414 — Frontiers of Applied Theory Syllabus upon request

Recent Papers

with Arjada Bardhi and Yingni Guo  ·  Review of Economic Studies
  • How does early-career discrimination affect workers' long-term prospects? Does it amplify or subside over time?
  • The answer critically depends on how worker ability is revealed: when failures are more informative than successes, even modest early discrimination can have outsized long-term effects.
  • Results established first in a small-market model with fixed wages, then extended to a large labor market with flexible wages.
with Théo Durandard  ·  Mathematics of Operations Research
  • Proves existence of a unique regular solution for a large class of time-heterogeneous nonlinear PDEs with multidimensional state, irregular obstacle, and Lipschitz domain.
  • Lipschitz domains include economically relevant non-smooth domains such as orthants and budget sets.
  • Irregular obstacles capture non-smooth stopping payoffs arising when a final binary decision must be made upon stopping.
with Harry Pei  ·  RAND Journal of Economics
  • Analyzes aggregation rules under which a defendant may be punished if the overall probability of guilt across accusations is high.
  • Shows that this approach, advocated by prominent legal scholars, can severely reduce the informativeness of witness reports and increase offender rates once strategic interactions are taken into account.
with Alex Bloedel and Vijay Krishna  ·  Econometrica
  • Revisits Williams (Econometrica, 2011) on optimal insurance with persistent private information and continuous time.
  • The contract characterized as optimal in that paper belongs to a class of self-insurance contracts and is generically suboptimal within this class.
  • Several claims about immiserization and the role of persistence and continuous time are not supported by the analysis; discrepancies are carefully elucidated.
with Harry Pei  ·  Review of Economic Studies, 2024
  • Studies robust implementation when agents must pay a cost to learn the state and face uncertainty about preferences and higher-order beliefs.
  • Proposes a mechanism implementing any desired social choice function when payoff perturbations have small ex ante probability.
  • Shows that full implementation is impossible unless agents have a direct interest in the state as it relates to the social choice.
with Ron Siegel  ·  American Economic Journal: Microeconomics, 2023
  • Studies the optimal design of judicial mechanisms—evidence production and sentencing—for several welfare criteria differing in their treatment of deterrence.
  • The optimal mechanism features plea bargaining, a binary verdict trial, and a conviction threshold based on the likelihood of guilt—all reminiscent of the US criminal justice system.
Working Paper
  • Proposes a model of societal learning where information must be discovered by individuals with specific expertise or unique access.
  • Without an intrinsic motive to seek and reveal the truth, societal learning relies on statistical conditions related to the availability of evidence.
  • Applications cover institutional enforcement, social cohesion, scientific progress, and historical revisionism.
American Economic Review, Papers and Proceedings, 2021
Working Paper
  • Defines a concept of renegotiation-proof contracts for dynamic contracts with a publicly observed or diffusion-driven state, using the algebraic notion of left-action groups.
  • Applied to a principal-agent insurance model with persistent private endowment shocks; renegotiation-proof contracts have a closed form characterized by a single number.
with Ron Siegel  ·  Working Paper
  • Proposes an economic model formalizing and unifying arguments in the legal literature for evidence-based sentencing.
  • Addresses remaining objections: political legitimacy, robustness, and incentives to acquire evidence.
with Mikhail Safronov  ·  Working Paper
  • Introduces contestable norms—social norms that include provisions both to deter violations and to address challenges to move to alternative norms.
  • Characterizes their payoffs, efficiency, stability, and evolution. Sheds new light on the efficient institution hypothesis and the renegotiation paradox.

Research by Topic

Auctions & Consumer Theory
Substitute Goods, Auctions, and Equilibrium
with Paul Milgrom  ·  Journal of Economic Theory, 2009
Comparative Statics
Discounting, Values, and Decisions
with John Quah  ·  Journal of Political Economy, 2013
Aggregating the Single Crossing Property
with John Quah  ·  Econometrica, 2012
Increasing Interdependence of Multivariate Distributions
with Margaret Meyer  ·  Journal of Economic Theory (Symposium on Inequality and Risk), 2012
Generalized Monotonicity Analysis
with Thomas Weber  ·  Economic Theory, 2010
Decision Theory
A Theory of Intergenerational Altruism
with Simone Galperti  ·  Econometrica, 2017
Dynamic Methods
On the Smoothness of Value Functions and the Existence of Optimal Strategies in Diffusion Models
with Martin Szydlowski  ·  Journal of Economic Theory (Symposium on Dynamic Contracts and Mechanism Design), 2015
Finance
Capital Mobility and Asset Pricing
with Darrell Duffie  ·  Econometrica, 2012
Performance Sensitive Debt
with Gustavo Manso and Alexei Tchistyi  ·  Review of Financial Studies, 2010  ·  Winner, SFS Young Researcher Award, 2009
Labor Economics
Early-Career Discrimination: Spiraling or Self-Correcting?
with Arjada Bardhi and Yingni Guo  ·  Review of Economic Studies, R&R
Law & Economics
Judicial Mechanism Design
with Ron Siegel  ·  American Economic Journal: Microeconomics, 2023
The Economic Case for Probability-Based Sentencing
with Ron Siegel  ·  Working Paper
Political Economy
Renegotiation, Contract Theory & Bargaining
Social Learning, Implementation & Experimentation
Early-Career Discrimination: Spiraling or Self-Correcting?
with Arjada Bardhi and Yingni Guo  ·  Review of Economic Studies, R&R  (see also: Labor Economics)
Robust Implementation with Costly Information
with Harry Pei  ·  Review of Economic Studies, 2024
Social Experimentation with Interdependent and Expanding Technologies
with Umberto Garfagnini  ·  Review of Economic Studies, 2016
Learning While Voting: Determinants of Collective Experimentation
Econometrica, 2010  (see also: Political Economy)
Operations Research
Additive Envelopes of Continuous Functions
with Thomas Weber  ·  Operations Research Letters, 2010
Monotone Comparative Statics: A Geometric Approach
with Thomas Weber  ·  Journal of Optimization Theory and Applications, 2008