A dynamic model of financial markets with learning is demonstrated to produce a selforganized system that displays critical behavior. The price contains private information that traders learn to extract and employ to forecast future value. Since the price reflects the beliefs of the traders, the learning process is self referencing. As the market learns to correctly extract information from the...

The paper discusses community enforcement in infinitely repeated, two-action games with local interaction and uncertain monitoring. Each player interacts with and observes only a fixed set of opponents, of whom he is privately informed. The main result shows that when beliefs about the monitoring structure have full support, efficiency can be sustained with sequential equilibria that are indepe...

Traditional decision theory has assumed that agents have com plete consistent and readily available beliefs and preferences Obviously even if an expert system has complete and consistent beliefs it cannot have them readily available Moreover some beliefs about beliefs are not even approximately com putable It is shown that if all players have complete and consistent beliefs they can compute app...

Feedback-based adjustment of load is a common mechanism for resource allocation in computer networks. This paper disputes the popular beliefs that the additive-increase multiplicative-decrease adjustment policy is optimal or even necessary for convergence to fair resource sharing. We demonstrate that, in the classic synchronous model, additive increase does not guarantee the quickest convergenc...

In a repeated-interaction public goods economy, dynamic behavior may affect the efficiency of various mechanisms thought to be efficient in one-shot games. Inspired by results obtained in previous experiments, the current paper proposes a simple best response model in which players’ beliefs are functions of previous strategy profiles. The predictions of the model are found to be highly consiste...

In a repeated-interaction public goods economy, dynamic behavior may affect the efficiency of various mechanisms thought to be efficient in one-shot games. Inspired by results obtained in previous experiments, the current paper proposes a simple best response model in which players’ beliefs are functions of previous strategy profiles. The predictions of the model are found to be highly consiste...

Traditional auction theory assumes that bidders possess values defined solely on the auctioned object. There may, however, be cases in which bidders possess preferences over the revenue achieved by the auctioneer. We present here a comprehensive framework of price preference valuations, unifying several phenomenon ranging from preference for charitable giving to shill bidding. We compare expect...

intolerance of uncertainty (iu) is increasingly conceptualized as a transdiagnostic factor underlying anxiety disorders and depression. current understanding of the relationship between intolerance of uncertainty and specific obsessive compulsive symptom domains remains limited. the purpose of the present study was to explore the prevalence of obsessive compulsive beliefs and intolerance of unc...