The Human version of Moore-Shannon's Theorem: The Design of Reliable Economic Systems

Moore & Shannon's theorem is the cornerstone in reliability theory, but cannot be applied to human systems in its original form. A generalization to human systems would therefore be of considerable interest because the choice of organization structure can remedy reliability problems that notoriously plaque business operations, financial institutions, military intelligence and other human activities. Our main result is a proof that provides answers to the following three questions. Is it possible to design a reliable social organization from fallible human individuals? How many fallible human agents are required to build an economic system of a certain level of reliability? What is the best way to design an organization of two or more agents in order to minimize error? On the basis of constructive proofs, this paper provides answers to these questions and thus offers a method to analyze any form of decision making structure with respect to its reliability.Organizational design; reliability theory; decision making; project selection

Ultrafast Plasmonic Control of Second Harmonic Generation

Efficient frequency conversion techniques are crucial to the development of plasmonic metasurfaces for information processing and signal modulation. In principle, nanoscale electric-field confinement in nonlinear materials enables higher harmonic conversion efficiencies per unit volume than those attainable in bulk materials. Here we demonstrate efficient second-harmonic generation (SHG) in a serrated nanogap plasmonic geometry that generates steep electric field gradients on a dielectric metasurface. An ultrafast pump is used to control plasmon-induced electric fields in a thin-film material with inversion symmetry that, without plasmonic enhancement, does not exhibit an an even-order nonlinear optical response. The temporal evolution of the plasmonic near-field is characterized with ~100as resolution using a novel nonlinear interferometric technique. The ability to manipulate nonlinear signals in a metamaterial geometry as demonstrated here is indispensable both to understanding the ultrafast nonlinear response of nanoscale materials, and to producing active, optically reconfigurable plasmonic device

Accuracy of Sampling Quantum Phase Space in Photon Counting Experiment

We study the accuracy of determining the phase space quasidistribution of a single quantized light mode by a photon counting experiment. We derive an exact analytical formula for the error of the experimental outcome. This result provides an estimation for the experimental parameters, such as the number of events, required to determine the quasidistribution with assumed precision. Our analysis also shows that it is in general not possible to compensate the imperfectness of the photodetector in a numerical processing of the experimental data. The discussion is illustrated with Monte Carlo simulations of the photon counting experiment for the coherent state, the one photon Fock state, and the Schroedinger cat state.Comment: 11 pages REVTeX, 5 figures, uses multicol, epsfig, and pstricks. Submitted to Special Issue of Journal of Modern Optics on Quantum State Preparation and Measuremen

Few cycle pulse propagation

We present a comprehensive framework for treating the nonlinear interaction of few-cycle pulses using an envelope description that goes beyond the traditional SVEA method. This is applied to a range of simulations that demonstrate how the effect of a $\chi^{(2)}$ nonlinearity differs between the many-cycle and few-cycle cases. Our approach, which includes diffraction, dispersion, multiple fields, and a wide range of nonlinearities, builds upon the work of Brabec and Krausz[1] and Porras[2]. No approximations are made until the final stage when a particular problem is considered. The original version (v1) of this arXiv paper is close to the published Phys.Rev.A. version, and much smaller in size.Comment: 9 pages, 14 figure

Fourier domain optical coherence tomography system with balance detection

A Fourier domain optical coherence tomography system with two spectrometers in balance detection is assembled using each an InGaAs linear camera. Conditions and adjustments of spectrometer parameters are presented to ensure anti-phase channeled spectrum modulation across the two cameras for a majority of wavelengths within the optical source spectrum. By blocking the signal to one of the spectrometers, the setup was used to compare the conditions of operation of a single camera with that of a balanced configuration. Using multiple layer samples, balanced detection technique is compared with techniques applied to conventional single camera setups, based on sequential deduction of averaged spectra collected with different on/off settings for the sample or reference beams. In terms of reducing the autocorrelation terms and fixed pattern noise, it is concluded that balance detection performs better than single camera techniques, is more tolerant to movement, exhibits longer term stability and can operate dynamically in real time. The cameras used exhibit larger saturation power than the power threshold where excess photon noise exceeds shot noise. Therefore, conditions to adjust the two cameras to reduce the noise when used in a balanced configuration are presented. It is shown that balance detection can reduce the noise in real time operation, in comparison with single camera configurations. However, simple deduction of an average spectrum in single camera configurations delivers less noise than the balance detection

Game Theoretic Formation of a Centrality Based Network

We model the formation of networks as a game where players aspire to maximize their own centrality by increasing the number of other players to which they are path-wise connected, while simultaneously incurring a cost for each added adjacent edge. We simulate the interactions between players using an algorithm that factors in rational strategic behavior based on a common objective function. The resulting networks exhibit pairwise stability, from which we derive necessary stable conditions for specific graph topologies. We then expand the model to simulate non-trivial games with large numbers of players. We show that using conditions necessary for the stability of star topologies we can induce the formation of hub players that positively impact the total welfare of the network.Comment: Submitted to 2012 ASE Social Informatics Conferenc

Is the gamma risk of options insurable?

In this article we analyze the risk associated with hedging written call options. We introduce a way to isolate the gamma risk from other risk types and present its loss distribution, which has heavy tails. Moving to an insurance point of view, we define a loss ratio that we find to be well behaved with a slightly negative correlation to traditional lines of insurance business, offering diversification opportunities. The tails of the loss distribution are shown to be much fatter than those of the underlying stock returns. We also show that badly estimated volatility, in the Black-Scholes model, leads to considerably biased values for the replicating portfolio. Operational risk is defined as caused by imperfect delta hedging and is found to be limited in today's markets where the autocorrelation of stock returns is small.Option; Insurance; Risk