Optimal Penalties on Deviations from Budgetary Targets

Optimal Enforcement and Adequate Penalties

When inspection is used to enforce a rule in a context such as arms control, auditing, or food and drug inspection, there is a conflict between inspector and inspectee that can be modeled as a non-zerosum strategic-form game. Suppose that the inspectee may violate at any subset of n non-identical “sites”, complying at the rest. The inspector chooses k < n sites at which to assess the inspectee’...

Avoidance Costs in Optimal Penalties

Optimal Insider Strategy with Law Penalties

It is very well known and documented that in many markets some traders had more information than others, more exactly they construct their strategies based on the knowledge of future events, this future information is known as the inside information and these traders are known as being the insiders of the market. Of course this kind of trading is illegal and the insiders are exposed to the risk...

Optimal defense theory explains deviations from latitudinal herbivory defense hypothesis.

The latitudinal herbivory defense hypothesis (LHDH) postulates that the prevalence of species interactions, including herbivory, is greater at lower latitudes, leading to selection for increased levels of plant defense. While latitudinal defense clines may be caused by spatial variation in herbivore pressure, optimal defense theory predicts that clines could also be caused by ecogeographic vari...

On Deviations from Bimaximal Neutrino Mixing

The PMNS neutrino mixing matrix UPMNS is in general a product of two unitary matrices Ulep and Uν arising from the diagonalization of the charged lepton and neutrino mass matrices, UPMNS = U † lepUν . Assuming that Uν is a bimaximal mixing matrix, we investigate the possible forms of Ulep. We identify three possible generic structures of Ulep, which are compatible with the existing data on neut...