We consider the trade-offs in the choice between depth (a narrow high quality position) and breadth (a wide low quality range). In particular, the extent of depth or breadth in a market can be non-monotonic in the strength of competition.

In this paper we evaluate the performance of several structural break tests under various DGPs. Concretely we look at size and power properties of CUSUM based, LM and Wald volatility break tests. In a simulation study we derive the properties of the tests under shifts in the unconditional and conditional variance as well as for smooth shifts in the volatility process. Our results indicate that ...

We study a global game in which actions are strategic complements over some region and strategic substitutes over another region. An agent’s payoff depends on a market fundamental and the actions of other agents. If the degree of congestion is sufficiently large, agents’ strategies are non-monotonic in their signal about the market fundamental. In this case, a signal that makes them believe tha...

The formal analysis of semantic networks and frame systems led to the development of nonmonotonic inheritance networks and termi-nological logics. While nonmonotonic inheritance networks formalize the notion of default inheritance of typical properties, terminological logics formalize the notion of deening concepts and reasoning about deenitions. Although it seems to be desirable to (re-)unify ...

Two principals engage in Hotelling competition for an agent's services under incomplete information as to her outside option (location). This renders the agent's participation decision probabilistic from the perspective of each principal. Regardless of the market structure at equilibrium the optimal contract features a trade-off between participation probability and incentives. Rent and effort ...

A mathematical model for conjectures in orthocomplemented lattices is presented. After defining when a conjecture is a consequence or a hypothesis, some operators of conjectures, consequences and hypotheses are introduced and some properties they show are studied. This is the case, for example, of being monotonic or non-monotonic operators. As orthocomplemented lattices contain orthomodular lat...

The panel on uncertain reasoning at AAAI-84 considered the question of whether or not implementations of non-monotonic reasoning should be probabilistic. A variety of (generally unsupported) claims were made to the effect that probabilities arc unintuitive, that the numbers needed arc unavailable, and that the method generally is inappropriate. The counterclaims that probabilities are intuit iv...

We characterize which scoring rules are Maskin-monotonic for each social choice problem as a function of the number of agents and the number of alternatives. We show that a scoring rule is Maskin-monotonic if and only if it satisfies a certain unanimity condition. Since scoring rules are neutral, Maskin-monotonicity turns out to be equivalent to Nash-implementability within the class of scoring...