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Social and Behavioral Sciences Commons™
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Articles 1 - 4 of 4
Full-Text Articles in Social and Behavioral Sciences
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.
How To Organize Conferences: Systems Approach, Olga Kosheleva, Vladik Kreinovich
How To Organize Conferences: Systems Approach, Olga Kosheleva, Vladik Kreinovich
Departmental Technical Reports (CS)
Research conferences are often organized by volunteers, namely, by people who are specialists in research but not in conference organization. As a result, some conferences are very successful, while some are not very successful. It is therefore desirable to provide newbie conference organizers with helpful recommendations. In this article, based on the experience of a successful recent conference, we provide the corresponding basic recommendations -- as well as their general-system explanation.
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.
Use Of Symmetries In Economics: An Overview, Vladik Kreinovich, Olga Kosheleva, Nguyen N. Thach, Nguyen Duc Trung
Use Of Symmetries In Economics: An Overview, Vladik Kreinovich, Olga Kosheleva, Nguyen N. Thach, Nguyen Duc Trung
Departmental Technical Reports (CS)
In this paper, we show that many semi-heuristic econometric formulas can be derived from the natural symmetry requirements. The list of such formulas includes many famous formulas provided by Nobel-prize winners, such as Hurwicz optimism-pessimism criterion for decision making under uncertainty, McFadden's formula for probabilistic decision making, Nash's formula for bargaining solution -- as well as Cobb-Douglas formula for production, gravity model for trade, etc.