Florian Ederer

You've seen the live performance. You've seen the slides. And maybe you've even seen the leaked rough cut that circulated online. So here it is at last: "Anonymity and Identity Online (Taylor's Version)" florianederer.github.io/ejmr.pdf

I never expected that Snowbasin would close before Mount Southington.

Amazing Probably the only reason I’d recommend political methodology as a field of PhD study at this point is that exit options from academia are truly impressive for the top talent

Do you remember the Austrian foreign minister who danced with Putin on her wedding day? She has sinced moved to Russia and become one of the Kremlin's most prominent Western propagandists. In a 6-part podcast for @DATUMSDZ magazine we tried to reconstruct her long path to Russia:

@Josh_Merfeld Agree. I can't think of anybody who said "Wow, what a great business move."

@florianederer No disagreements but it was still a wildly stupid idea.

$80 billion is a rounding error for Meta and the computing power used for the Metaverse was probably just repurposed for AI.

So this is what the Saudis bought instead of a navy ...

@f_montag Congrats! Such a cool paper.

Glad to see this coming out soon! Will a thread about the final version of the paper in a little bit

Liberalize and even if you elect idiots don't let them do too much damage. Both are hard. The first requires wisdom, the second - a mix of luck and decent institutions, in our case following EU And say what you want about the EU, it's decent and alternatives are much worse

AFCON provides the best entertainment.

Everyone’s talking about the K-shaped economy—the rich pulling away while everyone else stagnates. In our inaugural Stripe Economics post, I take a look at @stripe + macro data, and I see the K on Wall Street, but not yet on Main Street: • The most profitable third of US public companies now account for ~2/3 of total market cap—the highest on record. • The S&P 500 rose 16.5% in 2025, and the top 1% own ~40% of all equities. So unsurprisingly the top 1% wealth share has risen (~2pp) since 2022. • BUT, Stripe data suggest lower-income household spending has been growing faster than high-income households over the last few years. • Wages tell a similar story: real earnings at the 10th percentile grew ~0.5pp slower than the 90th since 2022, but BOTH posted positive real wage growth. • Why? 1) The wealthy hold lots of equities but only account for ~25% of consumer spending. 2) Real wages at the bottom have been supported by continued labor market tightness post-pandemic, though this may cool. Read the full post below and subscribe! stripeeconomics.substack.com/p/k-shaped-eco…

Industries that have antitrust exemptions & immunities are now highly concentrated, control the global market & raise prices for consumers. At today’s @HouseJudiciary hearing, Diana Moss calls on Congress to revisit antitrust exemptions like the Shipping Act to preserve competition and end oligopoly behaviors.

Bitcoin 🤝 Tulips Has there ever been a better match?

A day like today, exactly 25 years ago, my admired advisor Sherwin Rosen died, way too young, at 62 years of age. He was then the president of the AEA. We owe him some crucial ideas. I highlight 7. Hedonic Prices and Implicit Markets (JPE, 1974). How does the market price something as complex as a car, a house, or a job? Goods are bundles of characteristics. In equilibrium, the price schedule is the envelope of heterogeneous buyers' bids and heterogeneous sellers' offers—so market prices reveal the implicit value of each characteristic. Key to environmental valuation, the value of life, and urban quality-of-life indexes. Monopoly and Product Quality (JET, 1978, with Mussa). Did you wonder if your tourist class seat is too narrow? A monopolist who faces buyers differing in taste for quality degrades what she sells to low types so high types can't mimic them and capture the surplus. The foundational screening model. Education and Self-Selection (JPE, 1979, with Willis). Do grads from better colleges earn more because of how much they know? People sort into college by comparative advantage: those who go are better at college-type work, those who don't are better at non-college work. The returns need to be corrected. A crucial idea for an entire literature. The Economics of Superstars (AER, 1981). Why do rewards concentrate at the top in music, movies, sports etc.? When output can be replicated at zero marginal cost, and there is little substitutability in production, small talent differences produce enormous earnings gaps. The economics of the internet, twenty years early. Rank-Order Tournaments (JPE, 1981, with Lazear). When individual output is noisy, firms pay on rank; the spread between winner and loser is the instrument that elicits effort. Authority, Control, and the Distribution of Earnings (Bell Journal, 1982). In a hierarchy, each manager's talent is multiplied across everyone below her. A slightly better person at the top is worth disproportionately more- a better general decides which war we fight, hence affects all of our marginal products. That is why we see convexity of pay at the top of organizations. Prizes in Elimination Tournaments (AER, 1986). In a multi-round promotion ladder, the biggest jump must come in the final round, because the option value of future rounds has vanished, only the current prize can motivate. Professor Rosen would look distracted in seminars. He would look confused. Then he'd say something that changed the entire analysis and discussion. He never tried to look good at the speaker's expense. He just saw the problem more deeply than anyone in the room- no exceptions. One personal anecdote: during my PhD studies, I was totally depressed: I could not advance, all my ideas were awful. I could not bear going to his office. As i was coming upstairs towards the 4th floor of the Social Science building I met him in the stairs. He said. "I have not seen you, Luis, for a while." I said "Sorry Prof. Rosen, I had nothing to show you." He said "Well, you have to come. Come every week, whether you have something or not". incredibly, that short exchange was probably the most important one in my life. The duty to go to his room got me out of the hole.

Led by @AdamOzimek, Economic Innovation Group finds that households with H-1Bs contribute 2.6 times more net to all levels of the US government than the average US household.

This the EU miracle! cepr.org/voxeu/columns/…

@40yoap As always, there are only badly specified rules and the committee will use its full discretion to implement the decision it wanted all along.

@florianederer May 2027... yikes... I hope your tenure committee counts "forthcoming" 🫣

Excited to announce that our paper "Bayesian Persuasion with Lie Detection" is forthcoming in the Journal of Law & Economics with special thanks to the man who provided the perfect example for our analysis

@Kazimierz280415 Funny!

@florianederer (1) Wayne Gretzky: “I skate to where the puck is going to be, not where it has been.” (2) Weichan Min and Florian Ederer in a recent interview: “We study what is going to be relevant, not what has been relevant”.

Today we released our new NBER working paper: "Easy A's, Less Pay: The Long-Term Effects of Grade Inflation." Joint work with Rachel Nesbit, Nolan Pope, and Merrill Warnick. Grades in U.S. high schools have risen steadily over the past several decades, but the effect is unknown