This paper proposes a multivariate extension of the equilibrium pricing transforms for pricing general financial and insurance risks. The multivariate Esscher and Wang transforms are derived from Bühlmann’s equilibrium pricing model (1980) under some assumptions on the aggregate risk. It is shown that the Esscher and Wang transforms coincide with each other when the underlying risks are normall...

We model the idea that when consumers search for products, they first visit the firms which advertise more, or the firms whose advertising is more salient. Equilibrium prices and advertising efforts are increasing in consumer search costs. By contrast, equilibrium profits are nonmonotonic in search costs so firms are not necessarily better off if search costs rise. In our model, firms are engag...

We present and empirically implement an equilibrium labor market search model where risk averse workers facing medical expenditure shocks are matched with firms making health insurance coverage decisions. Our model delivers a rich set of predictions that can account for a wide variety of phenomenon observed in the data including the correlations among firm sizes, wages, health insurance offerin...

The spectrum of known black hole solutions to the stationary Einstein equations has increased in an unexpected way during the last decade. In particular, it has turned out that not all black hole equilibrium configurations are characterized by their mass, angular momentum and global charges. Moreover, the high degree of symmetry displayed by vacuum and electro-vacuum black hole space-times ceas...

The quintessential crime of the information age is identity theft, the malicious use of personal identifying data. In this paper we model “identity” and its use in credit transactions. Various types of identity theft occur in equilibrium, including “new account fraud,” “existing account fraud,” and “friendly fraud.” The equilibrium incidence of identity theft represents a tradeoff between a des...

In evolutionary games the fitness of individuals is not constant but depends on the relative abundance of the various strategies in the population. Here we study general games among n strategies in populations of large but finite size. We explore stochastic evolutionary dynamics under weak selection, but for any mutation rate. We analyze the frequency dependent Moran process in well-mixed popul...

This paper describes LaoGEM (Lao General Equilibrium Model), a 20 sector, 400 household general equilibrium model of the Lao economy, constructed specifically for the analysis of the effect of road improvement on rural poverty incidence in Laos. Unless otherwise stated, the database of the model refers to the year 2002. These features are relatively standard for comparative static general equil...

The ability to recognize a shape is linked to figure-ground (FG) organization. Cell preferences appear to be correlated across contrast-polarity reversals and mirror reversals of polygon displays, but not so much across FG reversals. Here we present a network structure which explains both shape-coding by simulated IT cells and suppression of responses to FG reversed stimuli. In our model FG seg...