The Kasparov-World Match

The Kasparov-World match was initiated by Microsoft with sponsorship from the bank First USA. The concept was that Garry Kasparov as White would play the rest of the world on the Web: one ply would be played per day and the World Team was to vote for its move. The Kasparov-World game was a success from many points of view. It certainly gave thousands the feeling of facing the world’s best player across the board and did much for the future of the game. Described by Kasparov as “phenomenal ... the most complex in chess history”, it is probably a worthy ‘Greatest Game’ candidate. Computer technology has given chess a new mode of play and taken it to new heights: the experiment deserves to be repeated. We look forward to another game and experience of this quality although it will be difficult to surpass the event we have just enjoyed. We salute and thank all those who contributed - sponsors, moderator, coaches, unofficial analysts, organisers, technologists, voters and our new friends

Reviews

Review of Low pay and the minimum wage, Labour relations in the public service: developing countries, Public employment law: the role of the contract of employment in Australia and Britain, The system of industrial relations in New Zealan

Why do spatial abilities predict mathematical performance?

Spatial ability predicts performance in mathematics and eventual expertise in science, technology and engineering. Spatial skills have also been shown to rely on neuronal networks partially shared with mathematics. Understanding the nature of this association can inform educational practices and intervention for mathematical underperformance. Using data on two aspects of spatial ability and three domains of mathematical ability from 4174 pairs of 12-year-old twins, we examined the relative genetic and environmental contributions to variation in spatial ability and to its relationship with different aspects of mathematics. Environmental effects explained most of the variation in spatial ability (~70%) and in mathematical ability (~60%) at this age, and the effects were the same for boys and girls. Genetic factors explained about 60% of the observed relationship between spatial ability and mathematics, with a substantial portion of the relationship explained by common environmental influences (26% and 14% by shared and non-shared environments respectively). These findings call for further research aimed at identifying specific environmental mediators of the spatial–mathematics relationship

The Kasparov-World Game

Kasparov-World, initiated by Microsoft and also sponsored by First USA, was a novel correspondence game played on the World Wide Web at one ply per day. This was the first time that any group had attempted to form on the Web and then solve shared problems against fixed, short-term deadlines. The first author first became involved in his role as a Web consultant, observing the dynamics and effectiveness of the group. These are fully described, together with observations on the technological contribution and the second author's post-hoc computation of some relevant Endgame Tables

Derivatives and Credit Contagion in Interconnected Networks

The importance of adequately modeling credit risk has once again been highlighted in the recent financial crisis. Defaults tend to cluster around times of economic stress due to poor macro-economic conditions, {\em but also} by directly triggering each other through contagion. Although credit default swaps have radically altered the dynamics of contagion for more than a decade, models quantifying their impact on systemic risk are still missing. Here, we examine contagion through credit default swaps in a stylized economic network of corporates and financial institutions. We analyse such a system using a stochastic setting, which allows us to exploit limit theorems to exactly solve the contagion dynamics for the entire system. Our analysis shows that, by creating additional contagion channels, CDS can actually lead to greater instability of the entire network in times of economic stress. This is particularly pronounced when CDS are used by banks to expand their loan books (arguing that CDS would offload the additional risks from their balance sheets). Thus, even with complete hedging through CDS, a significant loan book expansion can lead to considerably enhanced probabilities for the occurrence of very large losses and very high default rates in the system. Our approach adds a new dimension to research on credit contagion, and could feed into a rational underpinning of an improved regulatory framework for credit derivatives.Comment: 26 pages, 7 multi-part figure