Farsighted House Allocation

In this note we study von Neumann-Morgenstern farsightedly stable sets for Shapley and Scarf (1974) housing markets. Kawasaki (2008) shows that the set of competitive allocations coincides with the unique von Neumann-Morgenstern stable set based on a farsighted version of antisymmetric weak dominance (cf., Wako, 1999). We demonstrate that the set of competitive allocations also coincides with the unique von Neumann-Morgenstern stable set based on a farsighted version of strong dominance (cf., Roth and Postlewaite, 1977) if no individual is indifferent between his endowment and the endowment of someone else.housing markets, indivisible goods, farsightedness, von Neumann-Morgenstern stable sets, top trading cycles, competitive allocations

Case-Based Expected Utility: Preferences over Actions and Data

We consider a decision-situation in which the available information is given by a data-set. The decision-maker can express preferences over data-set-action pairs. In particular, he can compare different actions given the available information contained in a data-set and also different data-sets w.r.t. to the evidence they give in support of the choice of a given action. Three characteristics of a data-set can be used to evaluate the evidence it provides with respect to the payoff of a given action: the frequency of observations, the number of observations and the relevance of observations to the action under consideration. We state axioms, which ensure that the decision maker is indifferent among data-sets with identical frequencies, but different lengths. We then provide an expected utility representation of preferences, in which the beliefs of the decision maker about the outcome of a given action can be expressed as similarity-weighted frequencies of observed cases, as in BGSS (2005). The similarity weights reflect the subjectively perceived relevance of observations for the specific action.

Objective Momentum Barriers in Wall Turbulence

We use the recent frame-indifferent theory of diffusive momentum transport to identify internal barriers in wall-bounded turbulence. Formed by the invariant manifolds of the Laplacian of the velocity field, the barriers block the viscous part of the instantaneous momentum flux in the flow. We employ the level sets of single-trajectory Lagrangian diagnostic tools, the trajectory rotation average and trajectory stretching exponent, to approximate both vortical and internal wall-parallel momentum transport barrier (MTB) interfaces. These interfaces provide frame-indifferent alternatives to classic velocity-gradient-based vortices and boundaries between uniform momentum zones (UMZs). Indeed, we find that these elliptic manifold approximations and MTBs also significantly outperform standard vortices and UMZ interfaces in blocking diffusive momentum transport.Comment: 26 Pages, 14 Figur

Nice inducing schemes and the thermodynamics of rational maps

We consider the thermodynamic formalism of a complex rational map $f$ of degree at least two, viewed as a dynamical system acting on the Riemann sphere. More precisely, for a real parameter $t$ we study the (non-)existence of equilibrium states of $f$ for the potential $-t \ln |f'|$, and the analytic dependence on $t$ of the corresponding pressure function. We give a fairly complete description of the thermodynamic formalism of a rational map that is "expanding away from critical points" and that has arbitrarily small "nice sets" with some additional properties. Our results apply in particular to non-renormalizable polynomials without indifferent periodic points, infinitely renormalizable quadratic polynomials with a priori bounds, real quadratic polynomials, topological Collet-Eckmann rational maps, and to backward contracting rational maps. As an application, for these maps we describe the dimension spectrum of Lyapunov exponents, and of pointwise dimensions of the measure of maximal entropy, and obtain some level-1 large deviations results.Comment: Minor adjustments in the definition of bad pull-backs of pleasant couple

Extension of Preferences to an Ordered Set

If a decision maker prefers x to y to z, would he choose orderd set [x;z] or [y;x]? This article studies extension of preferences over individual alternatives to an ordered set which is prevalent in closed ballot elections with proportional representation and other real life problems where the decision maker is to choose from groups with an associated hierarchy inside. I introduce ve ordinal decision rules: highest-position, top-q, lexicographic order, max-best, highest-of-best rules and provide axiomatic characterization of them. I also investigate the relationship between ordinal decision rules and the expected utility rule. In particular, whether some ordinal rules induce the same (weak) ranking of ordered sets as the expected utility rule

Privatization and environmental policy in a mixed oligopoly

This paper analyzes the interaction between two political economy decisions by a government: whether to privatize a public firm and what environmental policy to choose (an environmental tax or an emission standard). We find that when market competition is weak the government does not privatize the public firm and sets an environmental tax. When it is intermediate the public firm is not privatized and the government sets an environmental standard. Finally, when market competition is strong the government privatizes the public firm and is indifferent between a tax and a standard.We thank two referees for helpful comments. Financial support from Ministerio de Ciencia y Tecnologia (ECO2015-66803-P) and Grupos de Investigacion UPV/EHU (GIU17/051) is gratefully acknowledged