Ambiguity Aversion and Trade

What is the effect of ambiguity aversion on trade? Although in a Bewley's model ambiguity aversion always lead to less trade, in other models this is not always true. However, we show that if the endowments are unambiguous then more ambiguity aversion implies less trade, for a very general class of preferences. The reduction in trade caused by ambiguity aversion can be as severe as to lead to no-trade. In an economy with MEU decision makers, we show that if the aggregate endowment is unanimously unambiguous then every Pareto optima allocation is also unambiguous. We also characterize the situation in which every unanimously unambiguous allocation is Pareto optimal. Finally, we show how our results can be used to explain the home-bias effect. As a useful result for our methods, we also obtain an additivity theorem for CEU and MEU decision makers that does not require comonotonicity. JEL Classification Numbers: D51, D6, D8

Quantum Mechanics without Waves: a Generalization of Classical Statistical Mechanics

We generalize classical statistical mechanics to describe the kinematics and the dynamics of systems whose variables are constrained by a single quantum postulate (discreteness of the spectrum of values of at least one variable of the theory). This is possible provided we adopt Feynman's suggestion of dropping the assumption that the probability for an event must always be a positive number. This approach has the advantage of allowing a reformulation of quantum theory in phase space without introducing the unphysical concept of probability amplitudes, together with all the problems concerning their ambiguous properties.Comment: 25 pages, Late

Spacetime from locality of interactions in deformations of special relativity: the example of κ\kappa-Poincar\'e Hopf algebra

A new proposal for the notion of spacetime in a relativistic generalization of special relativity based on a modification of the composition law of momenta is presented. Locality of interactions is the principle which defines the spacetime structure for a system of particles. The formulation based on $\kappa$-Poincar\'e Hopf algebra is shown to be contained in this framework as a particular example.Comment: 14 page

Energy efficient mining on a quantum-enabled blockchain using light

We outline a quantum-enabled blockchain architecture based on a consortium of quantum servers. The network is hybridised, utilising digital systems for sharing and processing classical information combined with a fibre--optic infrastructure and quantum devices for transmitting and processing quantum information. We deliver an energy efficient interactive mining protocol enacted between clients and servers which uses quantum information encoded in light and removes the need for trust in network infrastructure. Instead, clients on the network need only trust the transparent network code, and that their devices adhere to the rules of quantum physics. To demonstrate the energy efficiency of the mining protocol, we elaborate upon the results of two previous experiments (one performed over 1km of optical fibre) as applied to this work. Finally, we address some key vulnerabilities, explore open questions, and observe forward--compatibility with the quantum internet and quantum computing technologies.Comment: 25 pages, 5 figure