Interactive Apps

Topics: Uncertainty, Information Partitions, Filtrations, Contingent Markets, Discounted Expected Utility

Description

Understand what contingent goods exist under different assumption about the consumers' information structure. Learn how to set up the discounted expected utility for contingent goods. This app helps you visualize:

• How information partitions evolve over time (filtrations)
• How different information structures lead to different contingent markets
• The structure of discounted expected utility with state-contingent consumption

Features

Choose number of time periods, specify information revelation at each period, visualize the contingent markets tree, see the resulting expected utility formula

Topics: Constrained Optimization, Inequality Constraints, Systematic Solution Methods

Description

Learn the systematic Recipe #2 approach for solving constrained optimization problems with inequality constraints. This interactive app guides you through:

• Setting up the optimization problem with inequality constraints
• Formulating the Lagrangian function
• Applying the first-order optimality conditions
• Finding and verifying candidate solutions
• Visualizing feasible regions and optimal solutions

Features

Step-by-step problem solving workflow, interactive Lagrangian setup, systematic case analysis, dynamic visualization of constraints and solutions

Topics: Game Theory, Backward Induction, Sequential Games, Subgame Perfect Equilibrium

Description

Visualize and solve extensive-form games using backward induction. This interactive app helps you understand:

• Game tree structure and sequential decision-making
• How to find subgame perfect Nash equilibria
• Best response dynamics in sequential games
• The power of commitment and credibility in strategic situations

Features

Animated tree generation, interactive node selection, step-by-step solution visualization, print functionality for final solutions

Topics: Intertemporal Choice, Exponential Discounting, Hyperbolic Discounting, Time Inconsistency

Description

Practice calculating present utility and test for dynamic consistency of preferences. This app helps you understand:

• How to calculate present utility with exponential and hyperbolic discounting
• The difference between time-consistent and time-inconsistent preferences
• Why hyperbolic discounting leads to preference reversals
• Applications to commitment problems and self-control

Features

Random problem generation, exponential vs hyperbolic discounting, dynamic consistency checks, detailed step-by-step solutions

Topics: Recursive Preferences, Aggregator Functions, Intertemporal Substitution, Risk Aversion

Description

Calculate and compare recursive utility functions with different parameter specifications. This app helps you understand:

• How recursive utility separates risk aversion from intertemporal substitution
• The role of the aggregator function in preference formation
• Epstein-Zin preferences and their applications
• Comparative statics with respect to preference parameters

Features

Interactive parameter controls, real-time calculations, comparison across specifications, detailed mathematical explanations

Topics: Financial Markets, Arbitrage, Complete Markets, State Prices, Arrow-Debreu Securities

Description

Identify arbitrage opportunities and calculate state prices in complete markets. This app helps you understand:

• What constitutes an arbitrage opportunity
• How to construct arbitrage portfolios
• The relationship between asset prices and state prices
• Market completeness and spanning

Features

Random market scenarios, arbitrage detection, state price calculation, portfolio construction guidance

Please send suggestions or bug reports via Canvas message.

• Run directly in your browser (no installation needed)
• Generate random practice problems
• View step-by-step solutions
• Print problems for offline work