Implementing efficient allocations in a model of financial intermediation

In a finite-trader version of the Diamond-Dybvig (1983) model, the symmetric, ex-ante efficient allocation is implementable by a direct mechanism (i.e., each trader announces the type of his own ex-post preference) in which truthful revelation is the strictly dominant strategy for each trader. When the model is modified by formalizing the sequential-service constraint (cf. Wallace, 1988), the truth-telling equilibrium implements the symmetric, ex-ante efficient allocation with respect to iterated elimination of strictly dominated strategies.Econometric models

Power, norms and institutional change in the European Union: the protection of the free movement of goods

How do institutions of the European Union change? Using an institutionalist approach, this article highlights the interplay between power, cognitive limits, and the normative order that underpins institutional settings and assesses their impact upon the process of institutional change. Empirical evidence from recent attempts to reinforce the protection of the free movement of goods in the EU suggests that, under conditions of uncertainty, actors with ambiguous preferences assess attempts at institutional change on the basis of the historically defined normative order which holds a given institutional structure together. Hence, path dependent and incremental change occurs even when more ambitious and functionally superior proposals are on offer

Dialectical Roots for Interest Prohibition Theory

It is argued that arguments for strict prohibition of interests must be based on the use of arguments from authority. This is carried out by first making a survey of so-called dialectical roots for interest prohibition and then demonstrating that for at least one important positive interest bearing financial product, the savings account with interest, its prohibition cannot be inferred from a match with any of these root cases

Convergence of Learning Dynamics in Information Retrieval Games

We consider a game-theoretic model of information retrieval with strategic authors. We examine two different utility schemes: authors who aim at maximizing exposure and authors who want to maximize active selection of their content (i.e. the number of clicks). We introduce the study of author learning dynamics in such contexts. We prove that under the probability ranking principle (PRP), which forms the basis of the current state of the art ranking methods, any better-response learning dynamics converges to a pure Nash equilibrium. We also show that other ranking methods induce a strategic environment under which such a convergence may not occur

A Participatory Universe of J. A. Wheeler as an Intentional Correlate of Embodied Subjects and an Example of Purposiveness in Physics

This paper investigates the role of human subjectivity and its delimiters in articulating the universe in physics and cosmology. As a case study, we reflect upon the complex of ideas of the so called Participatory Universe by later J. A. Wheeler. The objective of the paper is to explicate the role of the human agency as a centre of disclosure and manifestation of the universe as well the as teleology of scientific representation of the world implied by the intrinsic purposiveness of human actions.Comment: 22 pages, 1 figur

The Individual Impacts of Commoditization

The process of commoditization has now entered its most significant phase. White collar work long the preserve of the educated elite is now going undergoing a significant transformation as it starts to commoditize. The principal impacts on the white collar employee include: One company, but many owners as the impacts of foreign ownership, buy-outs by private equity and takeovers by rivals continue to change the pattern of company ownership as well as employment. Few of us can expect to remain within a single company that retains its ownership for a lengthy period of time and with this comes additional uncertainty and insecurity The potential for most if not every white collar job being at risk from commoditization; perhaps not now, but certainly in the future. Remember, any job that can be codified is potentially at risk An increase in low level, routine work at the expense of the intrinsically interesting work most white collar workers have come to expect. This does not necessarily mean that work will be any less pressured. Evidence is pointing to the intensification of routine white collar work which is becoming more demanding not less. The loss of an obvious career path making it much harder to navigate through your working life. This is further compounded by the weakening of the relationship between education and employability which has until very recently been central to a successful career Economic instability and income stagnation as the China Price moves to the white collar labour market.Commoditization, employment