754 research outputs found
Decomposition of (co)isotropic relations
We identify thirteen isomorphism classes of indecomposable coisotropic
relations between Poisson vector spaces and show that every coisotropic
relation between finite-dimensional Poisson vector spaces may be decomposed as
a direct sum of multiples of these indecomposables. We also find a list of
thirteen invariants, each of which is the dimension of a space constructed from
the relation, such that the 13-vector of multiplicities and the 13-vector of
invariants are related by an invertible matrix over .
It turns out to be simpler to do the analysis above for isotropic relations
between presymplectic vector spaces. The coisotropic/Poisson case then follows
by a simple duality argument.Comment: 9 pages. The final publication is available at Springer via
http://dx.doi.org/10.1007/s11005-016-0863-5, in a special issue of Letters in
Mathematical Physics dedicated to the memory of Louis Boutet de Monvel. A
free, view-only version of the final publication is available under the
following link http://rdcu.be/mFX
(Co)isotropic Pairs in Poisson and Presymplectic Vector Spaces
We give two equivalent sets of invariants which classify pairs of coisotropic
subspaces of finite-dimensional Poisson vector spaces. For this it is
convenient to dualize; we work with pairs of isotropic subspaces of
presymplectic vector spaces. We identify ten elementary types which are the
building blocks of such pairs, and we write down a matrix, invertible over
, which takes one 10-tuple of invariants to the other
Robust Predictions in Infinite-Horizon Games--an Unrefinable Folk Theorem
We show that in any game that is continuous at infinity, if a plan of action ai is played by a type ti in a Bayesian Nash equilibrium, then there are perturbations of ti for which ai is the only rationalizable plan and whose unique rationalizable belief regarding the play of the game is arbitrarily close to the equilibrium belief of ti. As an application to repeated games, we prove an unrefinable folk theorem: any individually rational and feasible payoff is the unique rationalizable payoff vector for some perturbed type profile. This is true even if perturbed types are restricted to believe that the repeated-game payoff structure and the discount factor are common knowledge.Institute for Advanced Study (Princeton, N.J.
Sensitivity of equilibrium behavior to higher-order beliefs in nice games
We analyze “nice” games (where action spaces are compact intervals, utilities continuous and strictly concave in own action), which are used frequently in classical economic models. Without making any “richness” assumption, we characterize the sensitivity of any given Bayesian Nash equilibrium to higher-order beliefs. That is, for each type, we characterize the set of actions that can be played in equilibrium by some type whose lower-order beliefs are all as in the original type. We show that this set is given by a local version of interim correlated rationalizability. This allows us to characterize the robust predictions of a given model under arbitrary common knowledge restrictions. We apply our framework to a Cournot game with many players. There we show that we can never robustly rule out any production level below the monopoly production of each firm
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Price Dispersion and Loss Leaders
Dispersion in retail prices of identical goods is inconsistent with the standard model of price competition among identical firms, which predicts that all prices will be driven down to cost. One common explanation for such dispersion is the use of a loss-leader strategy, in which a firm prices one good below cost in order to attract a higher customer volume for profitable goods. By assuming each consumer is forced to buy all desired goods at a single firm, we create the possibility of an effective loss-leader strategy. We find that such a strategy cannot occur in equilibrium if individual demands are inelastic, or if demands are diversely distributed. We further show that equilibrium loss leaders can occur (and can result in positive profits) if there are demand complementarities, but only with delicate relationships among the preferences of all consumers.Economic
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