. Under these assumptions, it is shown by means of an arbitrage argument that the expected rate of return on any bond in excess of the spot rate is proportional to its standard deviation. This property is then used to derive a partial differential equation for bond prices. The solution to that equation

Existing equilibrium refinements rule out Nash equilibria susceptible to deviations. We propose a framework for considering not only equilibria impervious to deviations, but also equilibria likely to recur in the long run because they are repeatedly deviated to. We explore which equilibria

the conventional limits on the theory of production are widened, it is possible to define theoretical equilibrium positions not only for output, investment, and consumption as a whole, but for each sector of the economy.1 Within the framework set by forces determining the total level of output, THE ECONOMIC

We construct a dynamic general equilibrium model in which the typical industry colludes by threatening to punish deviations from an implicitly agreed upon pricing path. We argue that models of this type explain better than do competitive models the way in which the economy responds to aggregate

of Γ = 5. The sparse region at the top between 10 and 11 o’clock is an instance of a large density fluctuation. These take several minutes to relax and form elsewhere. B) shows the magnitude of the number-fluctuations (quantified by∆N, the standard deviation, normalized by the square root of the mean

Abstract: In this paper, we investigate robust optimization equilibria in game theory with two players, in which each player may neither exactly estimate his opponent’s strategies nor evaluate his own cost matrix accurately while may estimate a bounded asymmetric uncertain set. We obtain computationally tractable robust formulations which turns to be second-order cone complementarity problems. We provide a probability bound of constraint violation. Some numerical results are presented to illustrate the behavior of robust optimization equilibria. Key words: Robust optimization equilibria, game theory, second-order cone complementarity problem, probability bound Mathematics Subject Classification:??????????????? 1

We develop a stochastic, general equilibrium, two-country model of trade and macroeconomic dynamics. Productivity differs across individual, monopolistically competitive firms in each country. Firms face a sunk entry cost in the domestic market and both fixed and per-unit export costs. Only

We obtain large deviation estimates for a large class of nonuniformly hyperbolic systems: namely those modelled by Young towers with summable decay of correlations. In the case of exponential decay of correlations, we obtain exponential large deviation estimates given by a rate function

non-equilibrium systems

Thermodynamics: a crash course 1.1 Thermodynamic equilibrium states From a mechanical point of view, the equilibrium state of an elastic wire is characterized by its length L, that can be changed applying a tension (force) T on the extremes. The resulting length is an increasing function of τ: L