Reaction to Uncertainty and Market Mechanism:Experimental Evidence

Abstract Much of the evidence supporting the Ellsberg's paradox comes from experiments on individual choice and judgement. In this study, we address the issue whether, in market experiments, there is a tendency for anomalous behaviour to disappear or to be reduced as a consequence of market experience and feedback. We empirically test the validity of this assumption by running an auction market for the sale of both risky and uncertain prospects. We compare bidding behaviour and prices in market-like settings with valuations obtained from individual pricing tasks. We conclude that, with the repetition of the market experience, there is a tendency for subjective expected utility to perform better. However, economists' general assumption that, in laboratory experiments, poor performance of SEU is due to the lack of financial incentives or to the lack of market-like settings is by no means supported by our data.

Home and mortgage ownership of the Dutch elderly; explaining cohort, time and age effects

The relationship between home ownership of Dutch elderly households and age is strongly negative. Other studies suggest that this age gradient should be attributed to a cohort effect. In this paper, we investigate where those cohort effects come from. We also observe that mortgage ownership among elderly home-owners increased considerably during the nineties. Using panel data, we estimate models explaining home and mortgage ownership by age, cohort, and time effects, as well as other factors. Cohort and time effects are modelled explicitly using macro economic and housing market related variables. We find that the level of GDP per capita when the household head was young is the main factor explaining generation effects in home ownership among the elderly. After accounting for cohort effects it also appears that home ownership decreases slightly with age. Mortgage ownership among elderly home owners rose considerably during the nineties due to house price increases and due to financial innovation in the mortgage market. Cohort effects are also important. A supplementary analysis suggests that those cohort effects are due to the fact that the accidental bequest motive is becoming less important.

Long-range multipartite entanglement close to a first order quantum phase transition

We provide insight in the quantum correlations structure present in strongly correlated systems beyond the standard framework of bipartite entanglement. To this aim we first exploit rotationally invariant states as a test bed to detect genuine tripartite entanglement beyond the nearest-neighbor in spin-1/2 models. Then we construct in a closed analytical form a family of entanglement witnesses which provides a sufficient condition to determine if a state of a many-body system formed by an arbitrary number of spin-1/2 particles possesses genuine tripartite entanglement, independently of the details of the model. We illustrate our method by analyzing in detail the anisotropic XXZ spin chain close to its phase transitions, where we demonstrate the presence of long range multipartite entanglement near the critical point and the breaking of the symmetries associated to the quantum phase transition.Comment: 6 pages, 3 figures, RevTeX 4, the abstract was changed and the manuscript was extended including the contents of the previous appendix

Home and Mortgage Ownership of the Dutch Elderly: Explaining Cohort, Time and Age Effects

The relationship between home ownership of Dutch elderly households and age is strongly negative. Other studies suggest that this age gradient should be attributed to a cohort effect. In this paper we investigate where those cohort effects come from. We also observe that mortgage ownership among elderly home-owners increased considerably during the nineties. Using panel data we estimate models explaining home and mortgage ownership by age, cohort, and time effects, as well as other factors. Cohort and time effects are modelled explicitly using macro economic and housing market related variables. We find that the level of GDP per capita when the household head was young is the main factor explaining generation effects in home ownership among the elderly. After accounting for cohort effects it also appears that home ownership decreases slightly with age. Mortgage ownership among elderly home owners rose considerably during the nineties due to house price increases and due to financial innovation in the mortgage market. Cohort effects are also important. A supplementary analysis suggests that those cohort effects are due to the fact that the accidental bequest motive is becoming less important.home ownership, mortgages, cohort effects

Aromatic hyperbranched polyester/RTM6 epoxy resin for EXTREME dynamic loading aeronautical applications

The effects of the addition of an aromatic hyperbranched polyester (AHBP) on thermal, mechanical, and fracture toughness properties of a thermosetting resin system were investigated. AHBP filler, synthesized by using a bulk poly-condensation reaction, reveals a glassy state at room temperature. Indeed, according to differential scanning calorimetry measurements, the glass transition temperature (Tg) of AHBP is 95 °C. Three different adduct weight percentages were employed to manufacture the AHBP/epoxy samples, respectively, 0.1, 1, and 5 wt%. Dynamical Mechanical Analysis tests revealed that the addition of AHBP induces a negligible variation in terms of conservative modulus, whereas a slight Tg reduction of about 4 °C was observed at 5 wt% of filler content. Fracture toughness results showed an improvement of both critical stress intensity factor (+18%) and critical strain energy release rate (+83%) by adding 5 wt% of AHBP compared to the neat epoxy matrix. Static and dynamic compression tests covering strain rates ranging from 0.0008 to 1000 s−1 revealed a pronounced strain rate sensitivity for all AHBP/epoxy systems. The AHBP composites all showed an increase of the true peak yield compressive strength with the best improvement associated with the sample with 0.1 wt% of AHBP

Reaction to uncertainty and market mechanism : experimental evidence

Much of the evidence supporting the Ellsberg's paradox comes from experiments on individual choice and judgement. In this study, we address the issue whether, in market experiments, there is a tendency for anomalous behaviour to disappear or to be reduced as a consequence of market experience and feedback. We empirically test the validity of this assumption by running an auction market for the sale of both risky and uncertain prospects. We compare bidding behaviour and prices in market-like settings with valuations obtained from individual pricing tasks. We conclude that, with the repetition of the market experience, there is a tendency for subjective expected utility to perform better. However, economists' general assumption that, in laboratory experiments, poor performance of SEU is due to the lack of financial incentives or to the lack of market-like settings is by no means supported by our data