Political Yardstick Competition, Economic Integration, and Constitutional Choice in a Federation

This paper investigates the behavior of rent-seeking politicians in an environment of increasing economic integration. The focus of the paper is on the implications of globalization-induced political yardstick competition for constitutional design with a view to the current discussion in the European Union. In contrast to the established literature, we carefully portray the double-tiered government structure in federal systems. The number of lower-tier governments and the allocation of policy responsibilities to the two levels of government are subject to constitutional choice.Economic Integration, Federalism, Political Economy, Yardstick Competition

Colluding through Suppliers

In a dynamic game between N retailers and a large number of suppliers, I show that inefficient contracting emerges as a mechanism to implement collusion among retailers, building on the natural ‘complementarity’ between retail and wholesale prices. When efficient collusion is not sustainable, this complementarity allows retailers to rely on inefficient input supply, entailing double marginalization and negative franchise fees, to squeeze the wedge between collusive and deviation profits. I also study the role of communication on the equilibrium outcomes of games where retailers have the initiative. It turns out that communication is indeed fundamental to strengthen cartels' sustainability, although generating efficiency losses.Bertrand competition, double marginalization, collusion, competing hierarchies.

Forecasting the CATS benchmark with the Double Vector Quantization method

The Double Vector Quantization method, a long-term forecasting method based on the SOM algorithm, has been used to predict the 100 missing values of the CATS competition data set. An analysis of the proposed time series is provided to estimate the dimension of the auto-regressive part of this nonlinear auto-regressive forecasting method. Based on this analysis experimental results using the Double Vector Quantization (DVQ) method are presented and discussed. As one of the features of the DVQ method is its ability to predict scalars as well as vectors of values, the number of iterative predictions needed to reach the prediction horizon is further observed. The method stability for the long term allows obtaining reliable values for a rather long-term forecasting horizon.Comment: Accepted for publication in Neurocomputing, Elsevie

Ashkin-Teller universality in a quantum double model of Ising anyons

We study a quantum double model whose degrees of freedom are Ising anyons. The terms of the Hamiltonian of this system give rise to a competition between single and double topologies. By studying the energy spectra of the Hamiltonian at different values of the coupling constants, we find extended gapless regions which include a large number of critical points described by conformal field theories with central charge c=1. These theories are part of the Z_2 orbifold of the bosonic theory compactified on a circle. We observe that the Hilbert space of our anyonic model can be associated with extended Dynkin diagrams of affine Lie algebras which yields exact solutions at some critical points. In certain special regimes, our model corresponds to the Hamiltonian limit of the Ashkin-Teller model, and hence integrability over a wide range of coupling parameters is established.Comment: 11 pages, minor revision

Price Discrimination Through Barter: A Theory and Evidence from Russia

We build a model of imperfect competition where firms can sell for cash or in-kind payments. Barter is indivisible, and there is no double coincidence of wants. Despite these deficiencies, barter emerges in equilibrium as a means of price discrimination if market power is sufficiently concentrated. The model predicts negative correlation between number of sellers and share of barter in sales. We also show that barter disappears at certain level of concentration. Using survey data on Russian firms, we show that empirical evidence is consistent with predictions of the model. Sergei Guriev, Ph.D.

Optical surface modes in the presence of nonlinearity and disorder

We investigate numerically the effect of the competition of disorder, nonlinearity, and boundaries on the Anderson localization of light waves in finite-size, one-dimensional waveguide arrays. Using the discrete Anderson - nonlinear Schr\"odinger equation, the propagation of the mode amplitudes up to some finite distance is monitored. The analysis is based on the calculated localization length and the participation number, two standard measures for the statistical description of Anderson localization. For relatively weak disorder and nonlinearity, a higher disorder strength is required to achieve the same degree of localization at the edge than in the interior of the array, in agreement with recent experimental observations in the linear regime. However, for relatively strong disorder and/or nonlinearity, this behavior is reversed and it is now easier to localize an excitation at the edge than in the interior.Comment: 5 double-column pages, 7 figures, submitted for publicatio

Number squeezed and fragmented states of strongly interacting bosons in a double well

We present a systematic study of the phenomena of number squeezing and fragmentation for a repulsive Bose-Einstein condensate (BEC) in a three dimensional double well potential over a range of interaction strengths and barrier heights, including geometries that exhibit appreciable overlap in the one-body wavefunctions localized in the left and right wells. We compute the properties of the condensate with numerically exact, full dimensional path integral ground state (PIGS) Quantum Monte Carlo simulations and compare with results obtained from using two- and eight-mode truncated basis models. The truncated basis models are found to agree with the numerically exact PIGS simulations for weak interactions, but fail to correctly predict the amount of number squeezing and fragmentation exhibited by the PIGS simulations for strong interactions. We find that both number squeezing and fragmentation of the BEC show non-monotonic behavior at large values of interaction strength a. The number squeezing shows a universal scaling with the product of number of particles and interaction strength (Na) but no such universal behavior is found for fragmentation. Detailed analysis shows that the introduction of repulsive interactions not only suppresses number fluctuations to enhance number squeezing, but can also enhance delocalization across wells and tunneling between wells, each of which may suppress number squeezing. This results in a dynamical competition whose resolution shows a complex dependence on all three physical parameters defining the system: interaction strength, number of particles, and barrier height.Comment: 33 pages, 21 figures. Submitted for publication in Physical Review

Giant photon gain in large-scale quantum dot circuit-QED systems

Motivated by recent experiments on the generation of coherent light in engineered hybrid quantum systems, we investigate gain in a microwave photonic cavity coupled to quantum dot structures, and develop concrete directions for achieving a giant amplification in photon transmission. We propose two architectures for scaling up the electronic gain medium: (i) $N$ double quantum dot systems (N-DQD), (ii) $M$ quantum dots arranged in series akin to a quantum cascade laser setup. In both setups, the fermionic reservoirs are voltage biased, and the quantum dots are coupled to a single-mode cavity. Optical amplification is explained based on a sum rule for the transmission function, and it is determined by an intricate competition between two different processes: charge density response in the gain medium, and cavity losses to input and output ports. The same design principle is also responsible for the corresponding giant amplification in other photonic observables, mean photon number and emission spectrum, thereby realizing a quantum device that behaves as a giant microwave amplifier.Comment: 6 pages, 5 figure