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Social and Behavioral Sciences Commons™
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Articles 1 - 5 of 5
Full-Text Articles in Social and Behavioral Sciences
Why Quadratic Log-Log Dependence Is Ubiquitous And What Next, Sean R. Aguilar, Vladik Kreinovich, Uyen Pham
Why Quadratic Log-Log Dependence Is Ubiquitous And What Next, Sean R. Aguilar, Vladik Kreinovich, Uyen Pham
Departmental Technical Reports (CS)
In many real-life situations ranging from financial to volcanic data, growth is described either by a power law -- which is linear in log-log scale, or by a quadratic dependence in the log-log scale. In this paper, we use natural scale invariance requirement to explain the ubiquity of such dependencies. We also explain what should be a reasonable choice of the next model, if quadratic turns out to be not too accurate: it turns out that under scale invariance, the next class of models are cubic dependencies in the log-log scale, then fourth order dependencies, etc.
Economics Of Reciprocity And Temptation, Laxman Bokati, Olga Kosheleva, Vladik Kreinovich, Nguyen Ngoc Thach
Economics Of Reciprocity And Temptation, Laxman Bokati, Olga Kosheleva, Vladik Kreinovich, Nguyen Ngoc Thach
Departmental Technical Reports (CS)
Behavioral economics has shown that in many situations, people's behavior differs from what is predicted by simple traditional utility-maximization economic models. It is therefore desirable to be able to accurately describe people's actual behavior. In some cases, the difference from the traditional models is caused by bounded rationality -- our limited ability to process information and to come up with a truly optimal solutions. In such cases, predicting people's behavior is difficult. In other cases, however, people actually optimize -- but the actual expression for utility is more complicated than in the traditional models. In such case, it is, in …
Why Top Experts Are Paid So Much: Economics-Based Explanation, Julio C. Urenda, Vladik Kreinovich
Why Top Experts Are Paid So Much: Economics-Based Explanation, Julio C. Urenda, Vladik Kreinovich
Departmental Technical Reports (CS)
At first glance, it seems that people should be paid in proportion to their contribution, so if one person produces a little more than the other one, he/she should be paid a little more. In reality, however, top performers are paid dis-proportionally more than those whose performance is slightly worse. How can we explain this from an economic viewpoint? We show that actually there is no paradox here: a simple economic analysis shows that in many area, it makes perfect economic sense to pay much more to top performers.
Maximum Entropy Approach To Portfolio Optimization: Economic Justification Of An Intuitive Diversity Idea, Laxman Bokati, Vladik Kreinovich
Maximum Entropy Approach To Portfolio Optimization: Economic Justification Of An Intuitive Diversity Idea, Laxman Bokati, Vladik Kreinovich
Departmental Technical Reports (CS)
The traditional Markowitz approach to portfolio optimization assumes that we know the means, variances, and covariances of the return rates of all the financial instruments. In some practical situations, however, we do not have enough information to determine the variances and covariances, we only know the means. To provide a reasonable portfolio allocation for such cases, researchers proposed a heuristic maximum entropy approach. In this paper, we provide an economic justification for this heuristic idea.
Should Voting Be Mandatory? Democratic Decision Making From The Economic Viewpoint, Olga Kosheleva, Vladik Kreinovich, Boakun Li
Should Voting Be Mandatory? Democratic Decision Making From The Economic Viewpoint, Olga Kosheleva, Vladik Kreinovich, Boakun Li
Departmental Technical Reports (CS)
Many decisions are made by voting. At first glance, the more people participate in the voting process, the more democratic -- and hence, better -- the decision. In this spirit, to encourage everyone's participation, several countries make voting mandatory. But does mandatory voting really make decisions better for the society? In this paper, we show that from the viewpoint of decision making theory, it is better to allow undecided voters not to participate in the voting process. We also show that the voting process would be even better -- for the society as a whole -- if we allow partial …