Clay weekly context brief for the Economics category (ISO week 2026-W41).

Clay tracks publications from the Economics feed list. Below are recent items from this category, each with its source and a short description of what the publication covers when one is available in the source feed.

Recent publications:
1. The Fallback as Signal: Preserved Human Skill, Liability, and Competence Signaling in Credence-Good Markets under Improving AI
   Source: econ.TH (Theoretical Economics)
   Link: https://arxiv.org/abs/2608.04276
   Providers deploying imperfect AI must decide how much to keep humans engaged: engagement costs output but builds the fallback skill needed when it fails.
2. Optimal Fees for Liquidity Provision in Automated Market Makers
   Source: econ.GN (General Economics)
   Link: https://arxiv.org/abs/2508.08152
   Passive liquidity providers (LPs) in automated market makers (AMMs) face losses due to adverse selection (LVR), which static trading fees often fail to offset in practice.
3. Recursive contracts in non-convex environments
   Source: econ.TH (Theoretical Economics)
   Link: https://arxiv.org/abs/2511.20303
   Many dynamic contracting problems in economics are non-convex, and deterministic optima can be dominated by randomized solutions.
4. Daycare Matching with Siblings: Social Implementation and Welfare Evaluation
   Source: econ.GN (General Economics)
   Link: https://arxiv.org/abs/2604.13597
   In centralized matching markets, agents may value joint assignment, as with siblings or couples.
5. Uniqueness of Recursive Utility with Unbounded Consumption and Non-Expected Utility
   Source: econ.TH (Theoretical Economics)
   Link: https://arxiv.org/abs/2610.03157
   We derive sufficient conditions for the existence, non-existence, uniqueness and global attractivity of stochastic recursive utilities.
6. Right Order, Wrong Scale: Auditing LLM Judges for Occupational AI Measurement
   Source: econ.GN (General Economics)
   Link: https://arxiv.org/abs/2610.02492
   LLM judges are increasingly used to assess whether AI outputs meet workplace requirements, but agreement on response rankings does not establish agreement on acceptance rates or occupational aggregates.
7. Local Expected Utility in Infinite-Dimensional Spaces: Theory and Elicitation
   Source: econ.TH (Theoretical Economics)
   Link: https://arxiv.org/abs/2609.25026
   This paper develops a decision-theoretic interpretation of local expected utility on Abstract Wiener space.
8. A continuous-time dynamic contracting problem with limited liability and finite horizon
   Source: econ.GN (General Economics)
   Link: https://arxiv.org/abs/2609.18287
   We perform a detailed study of a principal--agent problem in a continuous time version of the celebrated Holmstr\"om--Milgrom model (Econometrica 55 (2), 1987) where we add limited liability for the Agent.

Sources in this brief: econ.GN (General Economics); econ.TH (Theoretical Economics).
Selected 8 of 8 available items for this weekly brief.