Ilya R. Segal, formerly on the faculty of the University of California-Berkeley, has joined the faculty of the Economics Department as an associate professor.
Segal is a specialist in contract theory and has developed models of transactions that take place in complex situations under conditions of uncertainty. He has shown, for example, why central governments of some countries wind up subsidizing failing firms. Firms are unable to commit to not renegotiate agreements, he argues, and this gives them an incentive to underinvest in productive assets that might reduce their subsidies. His work also helps explain why contracts to cover complex situations are often relatively incomplete even when complete contracts could have been written at a low cost.
Segal earned his doctorate in
economics from Harvard in 1995 and a master's degree in applied
mathematics from the Moscow Institute of Physics and Technology.