Ambiguity aversion as a reason to choose tournaments

We test the implications of ambiguity aversion in a principal-agent problem with multiple agents. When output distributions are uncertain, models of ambiguity aversion suggest that tournaments may become more attractive than independent wage contracts, in contrast to the case where output distributions are known. We do so by presenting agents with a choice between tournaments and independent contracts, which are designed in a way that under uncertainty about output distribution (that is, under ambiguity), ambiguity averse agents should typically prefer tournaments, while ambiguity neutral agents prefer independent contracts, independent of their degree of risk aversion. This is the case, because the tournament removes all ambiguity about the equilibrium wages. We compare the share of participants who choose the tournament under ambiguity with the share of participants choosing the tournament in a control treatment, where output distributions are know. As the theory predicts, we find indeed that under ambiguity the share of agents who choose the tournaments is higher than in the case of known output distributions.Ambiguity aversion, tournaments, Ellsberg urn, contract design

Renormalization scale uncertainty in tne DIS 2+1 jet cross-section

The deep inelastic scattering 2+1 jet cross- section is a useful observable for precision tests of QCD, e.g. measuring the strong coupling constant alpha(s). A consistent analysis requires a good understanding of the theoretical uncertainties and one of the most fundamental ones in QCD is due to the renormalization scheme and scale ambiguity. Different methods, which have been proposed to resolve the scale ambiguity, are applied to the 2+1 jet cross-section and the uncertainty is estimated. It is shown that the uncertainty can be made smaller by choosing the jet definition in a suitable way.Comment: 24 pages, uuencoded compressed tar file, DESY 94-082, TSL-ISV-94-009

A Note on Bayesian Model Selection for Discrete Data Using Proper Scoring Rules

We consider the problem of choosing between parametric models for a discrete observable, taking a Bayesian approach in which the within-model prior distributions are allowed to be improper. In order to avoid the ambiguity in the marginal likelihood function in such a case, we apply a homogeneous scoring rule. For the particular case of distinguishing between Poisson and Negative Binomial models, we conduct simulations that indicate that, applied prequentially, the method will consistently select the true model.Comment: 8 pages, 2 figure

Managing ambiguity of strategic alliances – the role of negotiations

Strategic alliances have become an important part of most company's portfolios. In an era of rapid technological change, the ever rapidly changing competitive landscape, and the globalization of competition more and more companies are choosing to participate in alliances. With their competitors entering into alliances, firms are often faced with few choices other than that of forming alliances to nullify the potential advantage of their rivals. The high failure rates are mirrored in the demise of some alliances that have garnered widespread publicity. This paper studies the increasing importance of negotiations in faceing and managing the ambiguity of the process of alliances and tries to formulate some rules to be followed in order to achieve the right balance in strategic alliances.strategic alliances, negotiation success, ambiguity, competition, failure

Operator Ordering Problem of the Nonrelativistic Chern-Simons Theory

The operator ordering problem due to the quantization or regularization ambiguity in the Chern-Simons theory exists. However, we show that this can be avoided if we require Galilei covariance of the nonrelativistic Abelian Chern-Simons theory even at the quantum level for the extended sources. The covariance can be recovered only by choosing some particular operator orderings for the generators of the Galilei group depending on the quantization ambiguities of the $gauge-matter$ commutation relation. We show that the desired ordering for the unusual prescription is not the same as the well-known normal ordering but still satisfies all the necessary conditions. Furthermore, we show that the equations of motion can be expressed in a similar form regardless of the regularization ambiguity. This suggests that the different regularization prescriptions do not change the physics. On the other hand, for the case of point sources the regularization prescription is uniquely determined, and only the orderings, which are equivalent to the usual one, are allowed.Comment: 18 page

Uniqueness of the Fock quantization of scalar fields in a Bianchi I cosmology with unitary dynamics

The Fock quantization of free scalar fields is subject to an infinite ambiguity when it comes to choosing a set of annihilation and creation operators, choice that is equivalent to the determination of a vacuum state. In highly symmetric situations, this ambiguity can be removed by asking vacuum invariance under the symmetries of the system. Similarly, in stationary backgrounds, one can demand time-translation invariance plus positivity of the energy. However, in more general situations, additional criteria are needed. For the case of free (test) fields minimally coupled to a homogeneous and isotropic cosmology, it has been proven that the ambiguity is resolved by introducing the criterion of unitary implementability of the quantum dynamics, as an endomorphism in Fock space. This condition determines a specific separation of the time dependence of the field, so that this splits into a very precise background dependence and a genuine quantum evolution. Furthermore, together with the condition of vacuum invariance under the spatial Killing symmetries, unitarity of the dynamics selects a unique Fock representation for the canonical commutation relations, up to unitary equivalence. In this work, we generalize these results to anisotropic spacetimes with shear, which are therefore not conformally symmetric, by considering the case of a free scalar field in a Bianchi I cosmology.Comment: 23 pages. Updated to match published versio

Decoding the Code of Civil Procedure: Do Judiciaries Matter for Growth?

This paper attempts to measure the causal impact of the speed of judiciaries on economic activity by using two novel instrumental variables measuring judicial procedural ambiguity and complexity. First, I find that temporally exogenous conflicting judicial decisions taken in India due to the Code of Civil Procedure's ambiguity lead to higher expected trial duration as judges are required to spend considerable time in choosing between several conflicting views. Second, I find that Inidan High Court amendments complicating procedures to treat a case are related to higher trial duration. By using spatial and temporal variations in the occurrence of conflicting decisions and enactment of amendments as instrumental variables, I am able to measure the impact of judicial speed on credit markets, agricultural development and manufacturing performance.Law and economics, Institutions, Courts, Economic Growth, Industrial Performance

Rotationally invariant 3D shape contexts using asymmetry patterns

This paper presents an approach to resolve the azimuth ambiguity of 3D Shape Contexts (3DSC) based on asymmetry patterns. We show that it is possible to provide rotational invariance to 3DSC at the expense of a marginal increase in computational load, outperforming previous algorithms dealing with the azimuth ambiguity. We build on a recently presented measure of approximate rotational symmetry in 2D defined as the overlapping area between a shape and rotated versions of itself to extract asymmetry patterns from a 3DSC in a variety of ways, depending on the spatial relationships that need to be highlighted or disabled. Thus, we define Asymmetry Patterns Shape Contexts (APSC) from a subset of the possible spatial relations present in the spherical grid of 3DSC; hence they can be thought of as a family of descriptors that depend on the subset that is selected. This provides great flexibility to derive different descriptors. We show that choosing the appropriate spatial patterns can considerably reduce the errors obtained with 3DSC when targeting specific types of points