We take a simple form of non-adversarial persuasion dialogue in which one participant (the persuader) aims to convince the other (the responder) to accept the topic of the dialogue by asserting sets of beliefs. The responder replies honestly to indicate whether it finds the topic to be acceptable (we make no prescription as to what formalism and semantics must be used for this, only assuming so...

DC is proposed for use in data centers as an alternative to AC distribution primarily based on publicized claims of efficiency improvements and energy savings. This paper shows that the most widely cited values for quantitative improvements are wrong and grossly overstate the efficiency differences between AC and DC, and that the latest AC and DC systems provide effectively the same efficiency....

In this paper, we correct part (b) of Theorem 6 of Grossman and Stiglitz (GS, 1980). We demonstrate that when the private signal tends to be perfect, the market converges to strong-form efficiency, and thus informed and uninformed traders have almost homogeneous beliefs about the stock payoff, but there is still significant net trade, rather than no trade as erroneously shown by GS. We further ...

We conduct a series of experiments that simulate trading in financial markets and which allows us to identify the different effects that subjects’ risk attitudes and belief updating rules have on the information content of the order flow. We find that there are very few risk-neutral subjects and that subjects displaying risk aversion or risk-loving tend to ignore private information when their ...

Ambiguity on Audits and Cooperation in a Public Goods Game We investigate the impact of various audit schemes on the future provision of public goods, when contributing less than the average of the group is sanctioned exogenously and the probability of an audit is unknown. We study how individuals update their beliefs about the probability of being audited, both before and after audits are defi...

Unclear bailout policy, underinvestment and calls for bankers’ responsibility are some of the observations from the recent financial crisis. The paper explains underinvestment as an inefficient equilibrium. Under ambiguous bailout policy agents suffer from a lack of information with regards to the insolvency resolution methods. Beliefs of bankers regarding whether an insolvent bank is liquidate...

This work offers a general framework of fuzzy constraint-based agent negotiation with opponent learning. The proposed approach via fuzzy probability constraint clusters the opponent’s information in negotiation process as proximate regularities to increase the efficiency on the convergence of behavior patterns, and eliminates the bulk of false hypotheses or beliefs to improves the effectiveness...

We study a definition of subjective beliefs applicable to preferences that allow for the perception of ambiguity, and provide a characterization of such beliefs in terms of market behavior. Using this definition, we derive necessary and sufficient conditions for the efficiency of ex ante trade and show that these conditions follow from the fundamental welfare theorems. When aggregate uncertaint...

1-~.levance reasoning in Bayesian networks can be la~ed to improve efficiency of belief updating ",dgorithaL~ by identit~ing and pruning those parts of a network that are irrelevant ibr the computation. Relevance reaqoning is based on the graphical property of d-separation and other simple and efficient techniques, the computational complexity of which is usuaUy negligible when compared to the ...