In this paper we study the introduction of new assets which are oftenly observed to be de…ned in expected values rather than state by state, called the Arrow-Lind-Malinvaud (ALM) assets. We demonstrate that individual default emerges naturally in an economy where such ALM assets are introduced without completing all contingency markets. We further provide conditions under which individual defau...

The objective of this paper is to adopt a general equilibrium model and determine the socially e¢ cient discount factor, risk free rate and discount rate when there are heterogeneous anticipations about the growth of the economy as well as heterogeneous time preference rates. Among others we tackle the following questions. Is the socially e¢ cient discount factor an arithmetic average of the in...

Visual attention can be automatically re-oriented by another person's non-predictive gaze as well as by symbolic arrow cues. We investigated whether the shifts of attention triggered by biologically relevant gaze cues and biologically non-relevant arrow cues rely on the same neural systems by comparing the effects of gaze-cued and arrow-cued orienting on blood oxygenation level-dependent (BOLD)...

An 84-year-old Japanese man presented with abdominal fullness and anorexia in September 2006. Computed tomography demonstrated extension of the stomach and the duodenum with a thickened wall. It showed marked dilatation of the main pancreatic duct (MPD) (A; arrowhead) and fistulization into the stomach (A; arrow) and the duodenum (B; arrow). Endoscopic examination demonstrated the skip ulcerati...

images of VPM-PET (left), Ktrans from ETM (middle), and EFPM (right). Choroid Plexus (thick arrow) and pituitary gland (arrow heads) are clearly depicted. The GCV shows high Ktrans on the maps of ETM, rendered with red color, but not EFPM. Note that GCV and other large vessels were not found on the PET image render blue representing lowest intensity. Figure 2. Axial (1st row) and sagittal (2nd ...

The main purpose of the paper is to show that the process of household formation in a competitive market does not necessarily lead to outcomes that are efficient at the economy level, even assuming that members of each household take efficient collective consumption decisions. To this end, we consider a generalization of the Arrow-Debreu exchange economy model in which endogenous household form...

The idea that markets might aggregate and disseminate information and also resolve conflicts is central to the literature on decentralization (Hurwicz, 1972) and rational expectations (Lucas, 1972). We report on three series of experiments all of which were predicted to have performed identically by the theory of rational expectations. In two of the three series (one in which participants trade...

Following up on the work of Megiddo and Vazirani [10], who determined continuity properties of equilibrium prices and allocations for perhaps the simplest market model, Fisher’s linear case, we do the same for: – Fisher’s model with piecewise-linear, concave utilities – Fisher’s model with spending constraint utilities – Arrow-Debreu’s model with linear utilities – Eisenberg-Gale markets.

We study equilibrium selection by evolutionary learning in monotone two-type signalling games. The learning process we study extends that introduced by Young (1993, Econometrica 61, 57–84) to deal with incomplete information and sequential moves; it thus involves stochastic trembles. For vanishing trembles the process gives rise to strong selection among sequential equilibria: if the game has s...