The presence of traders with superior information leads to a positive bid-ask spread even when the specialist is risk-neutral and makes zero expected profits. The resulting transaction prices convey information, and the expectation of the average spread squared times volume is bounded by a number

that analyzes the market-maker's exposure to traders with superior information. ' Concerning the extent of the information asym-metry, this body of theory yields two important empirical predictions: first,

The concept of Network-centric Warfare is powerful in terms of emphasizing the importance of accessing information by the warfighters, but just accessing information is not sufficient for future warfare. To achieve information superiority, a Warfighter-centric approach is required in addition

Abstract We analyze markets where insurers are better informed about risk than consumers. We show that even competitive markets may result in insufficient information revelation and inefficient insurance coverage. This explains why certain risky consumers remain unsinsured and why certain market

Feature selection is an important problem for pattern classification systems. We study how to select good features according to the maximal statistical dependency criterion based on mutual information. Because of the difficulty in directly implementing the maximal dependency condition, we first

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authority is determined by the structure of information, which in turn depends on the allocation of formal authority. An increase in an agent's real authority promotes initiative but results in a loss of control for the principal. After spelling out (some of) the main determinants of the delegation

Generative probability models such as hidden Markov models provide a principled way of treating missing information and dealing with variable length sequences. On the other hand, discriminative methods such as support vector machines enable us to construct flexible decision boundaries and often

jadeQcs.cmu.edu Abstract This paper presents a method for combining query-relevance with information-novelty in the context of text retrieval and summarization. The Maximal Marginal Relevance (MMR) criterion strives to reduce redundancy while maintaining query relevance in re-ranking retrieved

This is the original version of Principles and Practice, as published in 1982, with only minor changes. It is gratifying to point out that many of the predictions made in this book were confirmed by subsequent research, for example, the superiority of comprehensible-input based methods