We consider a Mirrleesian model of optimal income taxation with endogenous product prices. Given endogenous prices, any redistribution of income in the economy affects social welfare not only directly, but also through its influence on the level of product prices. To correct for this price externality, the optimal income tax schedule includes a new Pigouvian term. For competitive markets with i...

Following on the work of Indyk and McGregor [5], we consider the problem of identifying correlations in data streams. They consider a model where a stream of pairs (i, j) ∈ [n] arrive, giving a joint distribution (X,Y ). They find approximation algorithms for how close the joint distribution is to the product of the marginal distributions under various metrics, which naturally corresponds to ho...

I propose an extension to the consumption capital asset pricing model to incorporate the introduction of new goods over time and states of nature. In the model, consumers have a love of variety, and consumption consists of different components—product groups and brands. Expected growth in product groups increases expected future marginal utility, raising the incentive to save—thereby reducing t...

For many high-tech and Internet-related products, utility to consumers depends in part on the size of the user base, a phenomenon called network externality. A firm with a portfolio of these and other products – that are often asymmetric in their degree of network externality or marginal cost – may have to look beyond the traditional strategies of pure components, pure bundling and mixed bundli...

W present a model of fixing or patching a software problem after the product has been released in the market. Specifically, we model a software firm’s trade-off in releasing a buggy product early and investments in fixing it later. Just as the marginal cost of producing software can be effectively zero, so can the marginal cost of repairing multiple copies of defective software by issuing patch...

Real interest and inflation rates have been very low in many industrialized countries since the Great Recession. In this paper, a mechanism of low and floating real interest and inflation rates is examined based on the concept a “Nash equilibrium of a Pareto inefficient path” and the law of motion for trend inflation. I show that, because the link between the marginal product of capital and the...

We introduce a simple and interpretable model for functional data analysis for situations where the observations at each location are functional rather than scalar. This new approach is based on a tensor product representation of the function-valued process and utilizes eigenfunctions of marginal kernels. The resulting marginal principal components and product principal components are shown to ...

This paper presents a real-coded estimation distribution algorithm (EDA) inspired to the extended compact genetic algorithm (ECGA) and the real-coded Bayesian Optimization Algorithm (rBOA). Like ECGA, the proposed algorithm partitions the problem variables into a set of clusters that are manipulated as independent variables and estimates the population distribution using marginal product models...

This paper describes methods for determining the prices for a discrete set of interrelated products oflered by a single supplier. Each product has a fixed marginal rate per unit, the demand for each product depends upon the price levels of all the products and the supplier’s cost function depends upon the demands for all the products. For spec$c demand function forms, methods are described for ...

We investigate a number of factorisation conditions in the framework of sets of probability measures, or coherent lower previsions, with finite referential spaces. We show that the so-called strong product constitutes one way to combine a number of marginal coherent lower previsions into an independent joint lower prevision, and we prove that under some conditions it is the only independent pro...