Insuring the uninsurable : brokers and incomplete insurance contracts

How do markets spread risk when events are unknown or unknowable and where not anticipated in an insurance contract? While the policyholder can "hold up" the insurer for extra contractual payments, the continuing gains from trade on a single contract are often too small to yield useful coverage. By acting as a repository of the reputations of the parties, we show the brokers provide a coordinating mechanism to leverage the collective hold up power of policyholders. This extends both the degree of implicit and explicit coverage. The role is reflected in the terms of broker engagement, specifically in the ownership by the broker of the renewal rights. Finally, we argue that brokers can be motivated to play this role when they receive commissions that are contingent on insurer profits. This last feature questions a recent, well publicized, attack on broker compensation by New York attorney general, Elliot Spitzer. Klassifikation: G22, G24, L1

The simplicity project: easing the burden of using complex and heterogeneous ICT devices and services

As of today, to exploit the variety of different "services", users need to configure each of their devices by using different procedures and need to explicitly select among heterogeneous access technologies and protocols. In addition to that, users are authenticated and charged by different means. The lack of implicit human computer interaction, context-awareness and standardisation places an enormous burden of complexity on the shoulders of the final users. The IST-Simplicity project aims at leveraging such problems by: i) automatically creating and customizing a user communication space; ii) adapting services to user terminal characteristics and to users preferences; iii) orchestrating network capabilities. The aim of this paper is to present the technical framework of the IST-Simplicity project. This paper is a thorough analysis and qualitative evaluation of the different technologies, standards and works presented in the literature related to the Simplicity system to be developed

Decision Taking for Selling Thread Startup

Decision Taking is discussed in the context of the role it may play for a selling agent in a search market, in particular for agents involved in the sale of valuable and relatively unique items, such as a dwelling, a second hand car, or a second hand recreational vessel. Detailed connections are made between the architecture of decision making processes and a sample of software technology based concepts including instruction sequences, multi-threading, and thread algebra. Ample attention is paid to the initialization or startup of a thread dedicated to achieving a given objective, and to corresponding decision taking. As an application, the selling of an item is taken as an objective to be achieved by running a thread that was designed for that purpose

What’s in it for me? Incentive-compatible route coordination of crowdsourced resources

With the recent trend in crowdsourcing, i.e., using the power of crowds to assist in satisfying demand, the pool of resources suitable for GeoPresence-capable systems has expanded to include already roaming devices, such as mobile phones, and moving vehicles. We envision an environment, in which the motion of these crowdsourced mobile resources is coordinated, according to their preexisting schedules to satisfy geo-temporal demand on a mobility field. In this paper, we propose an incentive compatible route coordination mechanism for crowdsourced resources, in which participating mobile agents satisfy geo-temporal requests in return for monetary rewards. We define the Flexible Route Coordination (FRC) problem, in which an agent’s flexibility is exploited to maximize the coverage of a mobility field, with an objective to maximize the revenue collected from satisfied paying requests. Given that the FRC problem is NP-hard, we define an optimal algorithm to plan the route of a single agent on a graph with evolving labels, then we use that algorithm to define a 1/2-approximation algorithm to solve the problem in its general model, with multiple agents. Moreover, we define an incentive compatible, rational, and cash-positive payment mechanism, which guarantees that an agent’s truthfulness about its flexibility is an ex-post Nash equilibrium strategy. Finally, we analyze the proposed mechanisms theoretically, and evaluate their performance experimentally using real mobility traces from urban environments.Supported in part by NSF Grants, #1430145, #1414119, #1347522, #1239021, and #1012798

Incentive-compatible route coordination of crowdsourced resources

Technical ReportWith the recent trend in crowdsourcing, i.e., using the power of crowds to assist in satisfying demand, the pool of resources suitable for GeoPresen-ce-capable systems has expanded to include already roaming devices, such as mobile phones, and moving vehicles. We envision an environment, in which the motion of these crowdsourced mobile resources is coordinated, according to their preexisting schedules to satisfy geo-temporal demand on a mobility field. In this paper, we propose an incentive compatible route coordination mechanism for crowdsourced resources, in which participating mobile agents satisfy geo-temporal requests in return for monetary rewards. We define the Flexible Route Coordination (FRC) problem, in which an agent’s flexibility is exploited to maximize the coverage of a mobility field, with an objective to maximize the revenue collected from satisfied paying requests. Given that the FRC problem is NP-hard, we define an optimal algorithm to plan the route of a single agent on a graph with evolving labels, then we use that algorithm to define a 1-approximation algorithm to solve the 2 problem in its general model, with multiple agents. Moreover, we define an incentive compatible, rational, and cash-positive payment mechanism, which guarantees that an agent’s truthfulness about its flexibility is an ex-post Nash equilibrium strategy. Finally, we analyze the proposed mechanisms theoretically, and evaluate their performance experimentally using real mobility traces from urban environments

Insuring the Uninsurable: Brokers and Incomplete Insurance Contracts

How do markets spread risk when events are unknown or unknowable and where not anticipated in an insurance contract? While the policyholder can "hold up" the insurer for extra contractual payments, the continuing gains from trade on a single contract are often too small to yield useful coverage. By acting as a repository of the reputations of the parties, we show the brokers provide a coordinating mechanism to leverage the collective hold up power of policyholders. This extends both the degree of implicit and explicit coverage. The role is reflected in the terms of broker engagement, specifically in the ownership by the broker of the renewal rights. Finally, we argue that brokers can be motivated to play this role when they receive commissions that are contingent on insurer profits. This last feature questions a recent, well publicized, attack on broker compensation by New York attorney general, Elliot Spitzer.Incomplete Insurance Contracts, Brokerage, Contingent Commissions, Reputation

Incentive compatible route coordination of crowdsourced resources and its application to GeoPresence-as-a-Service

With the recent trend in crowdsourcing, i.e., using the power of crowds to assist in satisfying demand, the pool of resources suitable for GeoPresen- ce-capable systems has expanded to include already roaming devices, such as mobile phones, and moving vehicles. We envision an environment, in which the motion of these crowdsourced mobile resources is coordinated, according to their preexisting schedules to satisfy geo-temporal demand on a mobility field. In this paper, we propose an incentive compatible route coordination mechanism for crowdsourced resources, in which participating mobile agents satisfy geo-temporal requests in return for monetary rewards. We define the Flexible Route Coordination (FRC) problem, in which an agent's exibility is exploited to maximize the coverage of a mo- bility field, with an objective to maximize the revenue collected from sat- isfied paying requests. Given that the FRC problem is NP-hard, we define an optimal algorithm to plan the route of a single agent on a graph with evolving labels, then we use that algorithm to define a 1 2 -approximation algorithm to solve the problem in its general model, with multiple agents. Moreover, we define an incentive compatible, rational, and cash-positive payment mechanism, which guarantees that an agent's truthfulness about its exibility is an ex-post Nash equilibrium strategy. Finally, we analyze the proposed mechanisms theoretically, and evaluate their performance experimentally using real mobility traces from urban environments.Supported in part by NSF Grants, #1430145, #1414119, #1347522, #1239021, and #1012798