28,362 research outputs found
Optimistic versus Pessimistic--Optimal Judgemental Bias with Reference Point
This paper develops a model of reference-dependent assessment of subjective
beliefs in which loss-averse people optimally choose the expectation as the
reference point to balance the current felicity from the optimistic
anticipation and the future disappointment from the realisation. The choice of
over-optimism or over-pessimism depends on the real chance of success and
optimistic decision makers prefer receiving early information. In the portfolio
choice problem, pessimistic investors tend to trade conservatively, however,
they might trade aggressively if they are sophisticated enough to recognise the
biases since low expectation can reduce their fear of loss
Mapping class group and U(1) Chern-Simons theory on closed orientable surfaces
U(1) Chern-Simons theory is quantized canonically on manifolds of the form
, where is a closed orientable surface. In
particular, we investigate the role of mapping class group of in the
process of quantization. We show that, by requiring the quantum states to form
representation of the holonomy group and the large gauge transformation group,
both of which are deformed by quantum effect, the mapping class group can be
consistently represented, provided the Chern-Simons parameter satisfies an
interesting quantization condition. The representations of all the discrete
groups are unique, up to an arbitrary sub-representation of the mapping class
group. Also, we find a duality of the representations.Comment: 17 pages, 3 figure
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