The collusive drawbacks of sequential auctions

Sequential first-price auctions for multiple objects are very common in procurement, electricity, tobacco, timber, and oil lease markets. In this paper we identify two ways in which a sequential format may facilitate collusion among bidders relative to a simultaneous one. The first effect relates to the cartel’s ability to identify and punish defectors within the sequence, thus lowering the gains from a deviation with respect to a simultaneous format. The second effect concerns the cartel’s ability to allocate the bidder with the highest incentive to deviate (the ‘maverick’) to the last object of the sequence, thus increasing the viability of the collusive agreement. We then analyze how the seller may counteract this two effects by limiting the amount of information disclosed to bidders across rounds, and find that partial disclosure policies have little impact on the sustainability of collusion

Contracts as threats: On a rationale for rewarding A while hoping for B

In this paper we explore theoretically the relationship between explicit and implicit/relational contracting distinguishing between the ex-ante decision to sign an explicit contract and the ex-post decision wheter to actually apply it. We show, among other things, that the relational efficient explicit contract tends to display overcontracting on tasks or qualitative requirements (A) that are verifiable but apparently of little use for the principal. The ex-post (non)implementation of such explicit contract can then be discretionally exchanged against the provision of non contractible tasks (B) that are highly valuable for the principal. An empirical implication of the result, consistent with casual observation in procurement, is that penalties for infringements established by explicit contracts are seldom exercised, even though violations take place and are easy to monitor and verify

Dynamics of a FitzHugh-Nagumo system subjected to autocorrelated noise

We analyze the dynamics of the FitzHugh-Nagumo (FHN) model in the presence of colored noise and a periodic signal. Two cases are considered: (i) the dynamics of the membrane potential is affected by the noise, (ii) the slow dynamics of the recovery variable is subject to noise. We investigate the role of the colored noise on the neuron dynamics by the mean response time (MRT) of the neuron. We find meaningful modifications of the resonant activation (RA) and noise enhanced stability (NES) phenomena due to the correlation time of the noise. For strongly correlated noise we observe suppression of NES effect and persistence of RA phenomenon, with an efficiency enhancement of the neuronal response. Finally we show that the self-correlation of the colored noise causes a reduction of the effective noise intensity, which appears as a rescaling of the fluctuations affecting the FHN system.Comment: 13 pages, 10 figure

Time Horizon and Cooperation in Continuous Time

When subjects interact in continuous time, their ability to cooperate may dramatically increase. In an experiment, we study the impact of different time horizons on cooperation in (quasi) continuous time prisoner's dilemmas. We find that cooperation levels are similar or higher when the horizon is deterministic rather than stochastic. Moreover, a deterministic duration generates different aggregate patterns and individual strategies than a stochastic one. For instance, under a deterministic horizon subjects show high initial cooperation and a strong end-of-period reversal to defection. Moreover, they do not learn to apply backward induction but to postpone defection closer to the end.

Design of a Lambda system for population transfer in superconducting nanocircuits

The implementation of a Lambda scheme in superconducting artificial atoms could allow detec- tion of stimulated Raman adiabatic passage (STIRAP) and other quantum manipulations in the microwave regime. However symmetries which on one hand protect the system against decoherence, yield selection rules which may cancel coupling to the pump external drive. The tradeoff between efficient coupling and decoherence due to broad-band colored Noise (BBCN), which is often the main source of decoherence is addressed, in the class of nanodevices based on the Cooper pair box (CPB) design. We study transfer efficiency by STIRAP, showing that substantial efficiency is achieved for off-symmetric bias only in the charge-phase regime. We find a number of results uniquely due to non-Markovianity of BBCN, namely: (a) the efficiency for STIRAP depends essentially on noise channels in the trapped subspace; (b) low-frequency fluctuations can be analyzed and represented as fictitious correlated fluctuations of the detunings of the external drives; (c) a simple figure of merit for design and operating prescriptions allowing the observation of STIRAP is proposed. The emerging physical picture also applies to other classes of coherent nanodevices subject to BBCN.Comment: 14 pages, 11 figure

Thermal modeling of terahertz quantum-cascade lasers: comparison of optical waveguides

We compare a set of experimental lattice temperature profiles measured in a surface-emitting terahertz (THz) quantum-cascade laser (QCL) with the results of a 2-D anisotropic heat diffusion model. We evaluate the temperature dependence of the cross-plane thermal conductivity (kappaperp) of the active region which is known to be strongly anisotropic due to its superlattice-like nature. Knowledge of kappaperp and its temperature dependence is crucial in order to improve the temperature performance of THz QCLs and this has been used to investigate the longitudinal lattice temperature distribution of the active region and to compare the thermal properties of metal-metal and semi-insulating surface-plasmon THz optical waveguides using a 3-D anisotropic heat diffusion model

Noise Induced Phenomena in the Dynamics of Two Competing Species

Noise through its interaction with the nonlinearity of the living systems can give rise to counter-intuitive phenomena. In this paper we shortly review noise induced effects in different ecosystems, in which two populations compete for the same resources. We also present new results on spatial patterns of two populations, while modeling real distributions of anchovies and sardines. The transient dynamics of these ecosystems are analyzed through generalized Lotka-Volterra equations in the presence of multiplicative noise, which models the interaction between the species and the environment. We find noise induced phenomena such as quasi-deterministic oscillations, stochastic resonance, noise delayed extinction, and noise induced pattern formation. In addition, our theoretical results are validated with experimental findings. Specifically the results, obtained by a coupled map lattice model, well reproduce the spatial distributions of anchovies and sardines, observed in a marine ecosystem. Moreover, the experimental dynamical behavior of two competing bacterial populations in a meat product and the probability distribution at long times of one of them are well reproduced by a stochastic microbial predictive model.Comment: 23 pages, 8 figures; to be published in Math. Model. Nat. Phenom. (2016