1,233 research outputs found
Descending Price Optimally Coordinates Search
Investigating potential purchases is often a substantial investment under
uncertainty. Standard market designs, such as simultaneous or English auctions,
compound this with uncertainty about the price a bidder will have to pay in
order to win. As a result they tend to confuse the process of search both by
leading to wasteful information acquisition on goods that have already found a
good purchaser and by discouraging needed investigations of objects,
potentially eliminating all gains from trade. In contrast, we show that the
Dutch auction preserves all of its properties from a standard setting without
information costs because it guarantees, at the time of information
acquisition, a price at which the good can be purchased. Calibrations to
start-up acquisition and timber auctions suggest that in practice the social
losses through poor search coordination in standard formats are an order of
magnitude or two larger than the (negligible) inefficiencies arising from
ex-ante bidder asymmetries.Comment: JEL Classification: D44, D47, D82, D83. 117 pages, of which 74 are
appendi
Modeling self-organization of communication and topology in social networks
This paper introduces a model of self-organization between communication and
topology in social networks, with a feedback between different communication
habits and the topology. To study this feedback, we let agents communicate to
build a perception of a network and use this information to create strategic
links. We observe a narrow distribution of links when the communication is low
and a system with a broad distribution of links when the communication is high.
We also analyze the outcome of chatting, cheating, and lying, as strategies to
get better access to information in the network. Chatting, although only
adopted by a few agents, gives a global gain in the system. Contrary, a global
loss is inevitable in a system with too many liarsComment: 6 pages 7 figures, Java simulation available at
http://cmol.nbi.dk/models/inforew/inforew.htm
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Evolving graphs: dynamical models, inverse problems and propagation
Applications such as neuroscience, telecommunication, online social networking,
transport and retail trading give rise to connectivity patterns that change over time.
In this work, we address the resulting need for network models and computational
algorithms that deal with dynamic links. We introduce a new class of evolving
range-dependent random graphs that gives a tractable framework for modelling and
simulation. We develop a spectral algorithm for calibrating a set of edge ranges from
a sequence of network snapshots and give a proof of principle illustration on some
neuroscience data. We also show how the model can be used computationally and
analytically to investigate the scenario where an evolutionary process, such as an
epidemic, takes place on an evolving network. This allows us to study the cumulative
effect of two distinct types of dynamics
A fitness model for the Italian Interbank Money Market
We use the theory of complex networks in order to quantitatively characterize
the formation of communities in a particular financial market. The system is
composed by different banks exchanging on a daily basis loans and debts of
liquidity. Through topological analysis and by means of a model of network
growth we can determine the formation of different group of banks characterized
by different business strategy. The model based on Pareto's Law makes no use of
growth or preferential attachment and it reproduces correctly all the various
statistical properties of the system. We believe that this network modeling of
the market could be an efficient way to evaluate the impact of different
policies in the market of liquidity.Comment: 5 pages 5 figure
Exact solutions for models of evolving networks with addition and deletion of nodes
There has been considerable recent interest in the properties of networks,
such as citation networks and the worldwide web, that grow by the addition of
vertices, and a number of simple solvable models of network growth have been
studied. In the real world, however, many networks, including the web, not only
add vertices but also lose them. Here we formulate models of the time evolution
of such networks and give exact solutions for a number of cases of particular
interest. For the case of net growth and so-called preferential attachment --
in which newly appearing vertices attach to previously existing ones in
proportion to vertex degree -- we show that the resulting networks have
power-law degree distributions, but with an exponent that diverges as the
growth rate vanishes. We conjecture that the low exponent values observed in
real-world networks are thus the result of vigorous growth in which the rate of
addition of vertices far exceeds the rate of removal. Were growth to slow in
the future, for instance in a more mature future version of the web, we would
expect to see exponents increase, potentially without bound.Comment: 9 pages, 3 figure
Solution for the properties of a clustered network
We study Strauss's model of a network with clustering and present an analytic
mean-field solution which is exact in the limit of large network size. Previous
computer simulations have revealed a degenerate region in the model's parameter
space in which triangles of adjacent edges clump together to form
unrealistically dense subgraphs, and perturbation calculations have been found
to break down in this region at all orders. Our analytic solution shows that
this region corresponds to a classic symmetry-broken phase and that the onset
of the degeneracy corresponds to a first-order phase transition in the density
of the network.Comment: 5 pages, 2 figure
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Fracture-controlled gas hydrate systems in the northern Gulf of Mexico
High-angle, open mode fractures control the presence of natural gas hydrate in water-saturated clays at the Keathley Canyon 151 site in the northern Gulf of Mexico, which was investigated for gas hydrates as part of the Chevron Joint Industry Project drilling in 2005. We analyze logging-while-drilling resistivity images and infer that gas hydrate accumulated in situ in two modes: filling fractures and saturating permeable beds. High-angle hydrate-filled fractures are the most common mode for gas hydrate occurrence at this site, with most of these fractures dipping at angles of more than 40° and occurring between 220 and 300 m below seafloor. These fractures all strike approximately NâS, which agrees with the 165°SEâ345°NW maximum horizontal stress direction determined from borehole breakouts and which aligns with local bathymetric contours. In one interval of hydrate-filled fractures, porosity increases with increasing hydrate saturation. We suggest that high pore pressure may have dilated sediments during fracture formation, causing this increase in porosity. Furthermore, the formation of gas hydrate may have heaved fractures apart, also increasing the formation porosity in this interval
The statistical mechanics of networks
We study the family of network models derived by requiring the expected
properties of a graph ensemble to match a given set of measurements of a
real-world network, while maximizing the entropy of the ensemble. Models of
this type play the same role in the study of networks as is played by the
Boltzmann distribution in classical statistical mechanics; they offer the best
prediction of network properties subject to the constraints imposed by a given
set of observations. We give exact solutions of models within this class that
incorporate arbitrary degree distributions and arbitrary but independent edge
probabilities. We also discuss some more complex examples with correlated edges
that can be solved approximately or exactly by adapting various familiar
methods, including mean-field theory, perturbation theory, and saddle-point
expansions.Comment: 15 pages, 4 figure
On 1-factorizations of Bipartite Kneser Graphs
It is a challenging open problem to construct an explicit 1-factorization of
the bipartite Kneser graph , which contains as vertices all -element
and -element subsets of and an edge between any
two vertices when one is a subset of the other. In this paper, we propose a new
framework for designing such 1-factorizations, by which we solve a nontrivial
case where and is an odd prime power. We also revisit two classic
constructions for the case --- the \emph{lexical factorization} and
\emph{modular factorization}. We provide their simplified definitions and study
their inner structures. As a result, an optimal algorithm is designed for
computing the lexical factorizations. (An analogous algorithm for the modular
factorization is trivial.)Comment: We design the first explicit 1-factorization of H(2,q), where q is a
odd prime powe
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