We examine a new voting procedure that allows voters to express their preferences in the form of a voting strategy — a first-order function which specifies a vote. We examine the calculations necessary to formulate such voting strategies, and present examples which illustrate the effects of risk. The voting framework we discuss allows rational voters to vote strategically using decision-theoret...

Vectors and bags are basic collection data structures, which are used frequently in programs and specifications. Reasoning about these data structures is supported by established algorithms for deciding ground satisfiability in the theories of arrays (for vectors) and multisets (for bags), respectively. Yet, these decision procedures are only able to reason about vectors and bags in isolation, ...

We study pricing under the local volatility. Our research is mainly intended for pedagogical purposes. In the first part of our work we study the local volatility modeling. We derive the local volatility formula in terms of the European call prices and in terms of the market implied volatilities. We propose and calibrate to the DAX option data a functional form for the implied volatility which ...

In economics, the concept of time discounting introduces weights on future goods to make these less valuable. Yet, both the conceptual motivation for time discounting and its specific functional form remain contested. To address these problems, this paper provides a measurement-theoretic framework of representation for time discounting. The representation theorem characterises time discounting ...

Very often, when studying topological or dynamical properties of random scale-free networks, it is tacitly assumed that degree-degree correlations are not present. However, simple constraints, such as the absence of multiple edges and self-loops, can give rise to intrinsic correlations in these structures. In the same way that Fermionic correlations in thermodynamic systems are relevant only in...

A spillovers are a crucial factor in determining the optimal environment for innovation, there is no consensus regarding their impact on firm behavior. One reason for this may be that models differ in their assumptions for the functional form of the spillover pool. In industrial organization and economic geography, for example, the predominant convention is that all innovation within an industr...