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Full-Text Articles in Economic Theory
A Dynamical Systems Approach To Cryptocurrency Stability, Carey Caginalp
A Dynamical Systems Approach To Cryptocurrency Stability, Carey Caginalp
ESI Publications
Recently, the notion of cryptocurrencies has come to the fore of public interest. These assets that exist only in electronic form, with no underlying value, offer the owners some protection from tracking or seizure by government or creditors. We model these assets from the perspective of asset flow equations developed by Caginalp and Balenovich, and investigate their stability under various parameters, as classical finance methodology is inapplicable. By utilizing the concept of liquidity price and analyzing stability of the resulting system of ordinary differential equations, we obtain conditions under which the system is linearly stable. We find that trend-based motivations …
Establishing Cryptocurrency Equilibria Through Game Theory, Carey Caginalp, Gunduz Caginalp
Establishing Cryptocurrency Equilibria Through Game Theory, Carey Caginalp, Gunduz Caginalp
ESI Publications
We utilize optimization methods to determine equilibria of cryptocurrencies. A core group, the wealthy, fears the loss of assets that can be seized by a government. Volatility may be influenced by speculators. The wealthy must divide their assets between the home currency and the cryptocurrency, while the government decides the probability of seizing a fraction the assets of this group. We establish conditions for existence and uniqueness of Nash equilibria. Also examined is the separate timescale problem in which the government policy cannot be reversed, while the wealthy can adjust their allocation in reaction to the government’s designation of probability.
Why Real Leisure Really Matters: Incentive Effects On Real Effort In The Laboratory, Brice Corgnet, Roberto Hérnan-Gonzalez, Eric Schniter
Why Real Leisure Really Matters: Incentive Effects On Real Effort In The Laboratory, Brice Corgnet, Roberto Hérnan-Gonzalez, Eric Schniter
ESI Publications
On-the-job leisure is a pervasive feature of the modern workplace. We studied its impact on work performance in a laboratory experiment by either allowing or restricting Internet access. We used a 2x2 experimental design in which subjects completing real-effort work tasks could earn cash according to either individual- or team-production incentive schemes. Under team pay, production levels were significantly lower when Internet browsing was available than when it was not. Under individual pay, however, no differences in production levels were observed between the treatment in which Internet was available and the treatment in which it was not. In line with …