Strong and weak rarity value in Small Fish Wars

We analyze the effects of rarity value on the economic and ecological sustainability of a natural resource. Rarity value means that under extreme scarcity of the resource unit profits increase 'explosively'. We focus on equilibrium behavior of very patient agents in a Small Fish War. In such a setting, agents interacting on a body of water have two options: they can fish with restraint or without. Fishing with restraint allows the fish stock to recover; fishing without yields higher immediate but lower future catches. We make a distinction between weak and strong rarity value. In the weak variant, equilibrium behavior induces high sustainable fish stocks and long-run yields. In the strong one, very high equilibrium rewards may be obtained by almost exhausting the resource, but more moderate equilibrium rewards are feasible without endangering sustainability

Consistent Preferences with Fixed Point Updates

We propose a normative framework for complete preference orderings, in which updating is based on a straightforward fixed point principle. Its scope goes far beyond the Sure Thing Principle, and covers Bayesian updating as a special case, without reference to probabilities. The induced preference reversals are justified on the basis of an interpretation that reconciles consequentialism with adequate forms of choice consistency, and absence of arbitrage. We emphasize the distinction between dynamic choices with or without rights in bygone states, and between choosing if it comes to obtaining versus offering. The framework accommodates the preferences in the Allais and Ellsberg paradoxes, which indicates that the gap between descriptive and normative models is narrower than generally believed

Impact of Successful DDoS Attacks on a Major Crypto-Currency Exchange

Distributed Denial of Service (DDoS) attacks provide an easy option for these criminals to disrupt the business of these online platforms. We analyse the economic impact of DDoS attacks on a crypto-currency exchange using event analysis. Our contributions are fourfold: Firstly, we develop an estimation model utilising ideas from behavioural finance to predict volume of crypto-currency traded on the basis of changes in price. Secondly, we perform an event analysis to evaluate whether there is an impact of a DDoS attack on the volume traded on the exchange in 17 different cases. Thirdly, we find that in 13 cases the negative impact due to a DDoS attack is recovered within the same day by the exchange. Finally, we evaluate hourly trade data to show why in most cases the volume traded recovers within a single day