HOW DO MARKETS MANAGE WATER RESOURCES? AN EXPERIMENT ON RESOURCE MARKET (DE) CENTRALIZATION WITH ENDOGENOUS QUALITY.

We test how a monopoly, a duopoly and a public monopoly manage and allocate water resources. Stock depletion for the public monopoly is fastest. However, it reaches the optimal stock level towards the end of the experimental sessions. The private monopoly and duopoly maintain inefficiently high levels of stock throughout the sessions. The average quality to price ratio offered by the public monopoly is substantially higher than that offered by the private monopoly or duopoly. A clear result from the experiments is that a public monopoly offers the highest (average) quality to price ratio and has the fastest rate of stock depletion compared to a private monopoly or duopoly.

The Moral Herd: Groups and the Evolution of Altruism and Cooperation

Bergh, J.C.J.M. van den [Promotor]Veelen, C.M. van [Copromotor

Event-based Vision meets Deep Learning on Steering Prediction for Self-driving Cars

Event cameras are bio-inspired vision sensors that naturally capture the dynamics of a scene, filtering out redundant information. This paper presents a deep neural network approach that unlocks the potential of event cameras on a challenging motion-estimation task: prediction of a vehicle's steering angle. To make the best out of this sensor-algorithm combination, we adapt state-of-the-art convolutional architectures to the output of event sensors and extensively evaluate the performance of our approach on a publicly available large scale event-camera dataset (~1000 km). We present qualitative and quantitative explanations of why event cameras allow robust steering prediction even in cases where traditional cameras fail, e.g. challenging illumination conditions and fast motion. Finally, we demonstrate the advantages of leveraging transfer learning from traditional to event-based vision, and show that our approach outperforms state-of-the-art algorithms based on standard cameras.Comment: 9 pages, 8 figures, 6 tables. Video: https://youtu.be/_r_bsjkJTH

An Experiment on Prisoner’s Dilemma with Confirmed Proposals

We apply an alternating proposals protocol with a confirmation stage as a way of solving a Prisoner’s Dilemma game. We interpret players’ proposals and (no) confirmation of outcomes of the game as a tacit communication device. The protocol leads to unprecedented high levels of cooperation in the laboratory. Assigning the power of confirmation to one of the two players alone, rather than alternating the role of a leader significantly increases the probability of signing a cooperative agreement in the first bargaining period. We interpret pre-agreement strategies as tacit messages on players’ willingness to cooperate and on their beliefs about the others’ type.Prisoner’s Dilemma; Bargaining; Confirmed Proposals; Confirmed Agreement; Tacit Communication.

INVESTING IN THE FINANCIAL SECTOR OF EMERGING COUNTRIES: POTENTIAL RISK AND HOW TO MANAGE THEM

The purpose of this article is to assess how the changing operations of international banks in emerging countries in the last decades have altered the risks they face as well as their mitigation techniques. The recent expansion of the international banking business through the setup of branches and subsidiaries has increased business potential, but has also changed the nature of the risks faced. Nevertheless, it is hard to determine whether risks, on the whole, are larger now than when cross- border operations were the main instrument for international banks’ activity. In addition, the article describes the various channels through which the risks faced by banks operating in emerging countries increase in times of crisis, especially when operating locally and in highly dollarized host countries, as shown in the latest crisis events. While the financial independence of subsidiaries may be considered an important tool of risk control, the possibilities to mitigate risks in local markets during times of crisis are generally scarce. This could be due to the relatively recent expansion of foreign banks’ local operations in emerging countries, as compared to the cross-border business, together with the relative underdevelopment of local financial markets, or perhaps to the nature of the local business itself.financial, foreign direct investment, emerging countries, risk management

Adaptive behavior by single-product and multiproduct price setting firms in experimental markets

We focus on the learning dynamics in multiproduct price-setting markets, where firms use past strategies and performance to adapt to the corresponding equilibrium

Sobre la toma de decisiones economicas bajo incertidumbre

In this article we review the evolution of economic theory on decision making under uncertainty. After a brief reference to Expected Utility Theory, we refer to behavioural paradoxes, forcing the theorists to adopt less restrictive approaches, allowing us to explain a broader spectrum of phenomena. The complexity entailed in the new theories requires a multidimensional description of human attitudes towards risk. Nevertheless, measurement of this attitudes has not followed the desired path, with most elicitation methods remaining uni-dimensional

A minor-merger origin for inner disks and rings in early-type galaxies

Nuclear disks and rings are frequent galaxy substructures, for a wide range of morphological types (from S0 to Sc). We have investigated the possible minor-merger origin of inner disks and rings in spiral galaxies through collisionless N-body simulations. The models confirm that minor mergers can drive the formation of thin, kinematically-cold structures in the center of galaxies out of satellite material, without requiring the previous formation of a bar. Satellite core particles tend to be deposited in circular orbits in the central potential, due to the strong circularization experienced by the satellite orbit through dynamical friction. The material of the satellite core reaches the remnant center if satellites are dense or massive, building up a thin inner disk; whereas it is fully disrupted before reaching the center in the case of low-mass satellites, creating an inner ring instead.Comment: 2 pages, 2 figures, Proceedings of the conference "Hunting for the Dark: The Hidden Side of Galaxy Formation", held in Malta, 19-23 Oct. 2009, ed. V. Debattista and C. C. Popescu, AIP Conf. Ser., in pres

Corruption and individual ethics: insights from a public procurement auction

This article proposes an auction model where two firms compete for obtaining the license for a public project and an auctioneer acting as a public official representing the political power, decides the winner of the contest. Players as firms face a social dilemma in the sense that the higher is the bribe offered, the higher would be the willingness of a pure monetary maximizer public official to give her the license. However, it implies inducing a cost of reducing all players’ payoffs as far as our model includes an endogenous externality, which depends on bribe. All players’ payoffs decrease with the bribe (and increase with higher quality). We find that the presence of bribe aversion in either the officials’ or the firms’ utility function shifts equilibrium towards more pro-social behavior. When the quality and bribe-bid strategy space is discrete, multiple equilibria emerge including more pro-social bids than would be predicted under a continuous strategy space