[New Economic Windows] Econophysics and Economics of Games, Social Choices and Quantitative Techniques ||

The combined efforts of the Physicists and the Economists in recent years in a- lyzing and modeling various dynamic phenomena in monetary and social systems have led to encouragingdevelopments, generally classi?ed under the title of Eco- physics. These developmentsshare a commonambitionwith the alreadyestablished ?eld of Quantitative Economics. This volume intends to offer the reader a glimpse of these two parallel initiatives by collecting review papers written by well-known experts in the respective research frontiers in one cover. This massive book presents a unique combination of research papers contributed almost equally by Physicists and Economists. Additional contributions from C- puter Scientists and Mathematicians are also included in this volume. It consists of two parts: The ?rst part concentrates on econophysics of games and social choices and is the proceedings of the Econophys-Kolkata IV workshop held at the Indian Statistical Institute and the Saha Institute of Nuclear Physics, both in Kolkata, d- ing March 9-13, 2009. The second part consists of contributionsto quantitative e- nomics by experts in connection with the Platinum Jubilee celebration of the Indian Statistical Institute. In this connectiona Forewordfor the volume, written by Sankar K. Pal, Director of the Indian Statistical Institute, is put forth. Both parts specialize mostly on frontier problems in games and social choices. The?rst partofthebookdealswith severalrecentdevelopmentsineconophysics. Game theory is integral to the formulation of modern economic analysis. Often games display a situation where the social optimal could not be reached as a - sult of non co-operation between different agents Title Page Copyright Page Preface Foreword Table of Contents Part I Econophysics of Games and Social Choices Kolkata Paise Restaurant Problem in Some Uniform Learning Strategy Limits 1 Introduction 2 Numerical Analysis 2.1 Random-Choice 2.2 Strict-Rank-Dependent Choice 2.3 Avoiding-Past-Crowd Choice 3 Analytical Results 3.1 Random-Choice Case 3.2 Strict-Rank-Dependent Choice 3.3 Avoiding-Past-Crowd Choice 4 Summary and Discussion References Cycle Monotonicity in Scheduling Models 1 Introduction 2 The Model 3 Directed Graphs and Strategyproofness 4 The Main Result 5 Transfer Rules and Revenue Equivalence References Reinforced Learning in Market Games 1 Introduction 2 Reinforcement Learning in Market Games 2.1 Kelly’s Criterion 2.2 MMM Model 2.3 Learning Across Games 3 Conclusion References Mechanisms Supporting Cooperation for the Evolutionary Prisoner’s Dilemma Games 1 Introduction 2 Evolutionary Prisoner’s Dilemma Games on Graphs 3 Numerical Results for Heterogeneous Influential Effects 4 Summary and Perspectives References Economic Applications of Quantum Information Processing 1 Introduction 2 Preliminaries 2.1 Pure States 2.2 Composite Quantum Systems: Entanglement 2.3 Evolution 2.4 Observables and Measurement 3 Quantum Information Applications to Economics 4 Quantum Auctions by Adiabatic Search Protocol 5 Conclusions References Using Many-Body Entanglement for Coordinated Action in Game Theory Problems 1 Introduction 2 Quantum Solutions to Classical Problems 2.1 Kolkata Paise Restaurant Problem 2.2 Kolkata Stadium Problem 3 Conclusions Appendix Many-Particle Entangled State References Condensation Phenomena and Pareto Distribution in Disordered Urn Models 1 Introduction 2 General Formulation 3 Bose Condensation and Emergence of the Pareto Tail 4 Interpretation From a View Point of Macroeconomics 5 Conclusion References Economic Interactions and the Distribution of Wealth 1 Introduction 2 The Model 3 Infinite Economy 3.1 Stationary Economy 3.2 Endogenous Growth Economy 4 Conclusions and Future Research References Wealth Redistribution in Boltzmann-like Models of Conservative Economies 1 Introduction 2 A Kinetic Model with Redistribution 3 Pareto Tails and Taxation 4 Numerical Results References Multi-species Models in Econo- and Sociophysics 1 Introduction 2 Multi-modal Wealth Distributions 3 Opinion Formation with Strong Leaders References The Morphology of Urban Agglomerations for Developing Countries: A Case Study with China 1 Introduction 2 Data Treatment 2.1 Verification of Zipf’s Law 2.2 Verification of Gibrat’s Law 3 A Migration Based Model 3.1 A Simulation Study 4 Discussion References A Mean-Field Model of Financial Markets: Reproducing Long Tailed Distributions and Volatility Correlations 1 Introduction 2 The Model 3 Results 3.1 Long Tailed Nature of the Return Distribution 3.2 Long-tailed Nature of the Distribution of Traders 3.3 Verifying the Power Law Nature of the Return Distribution 3.4 Volatility Clustering 4 Reproducing the Inverse Cubic Law 5 Discussion 6 Conclusions References Statistical Properties of Fluctuations: A Method to Check Market Behavior 1 Introduction 2 Continuous Wavelet Analysis through Morlet Wavelet 3 Discrete Wavelet Based Method for Characterizing Multifractal Behavior 4 Data Analysis and Observations 5 Conclusion References Modeling Saturation in Industrial Growth 1 Introduction 2 A Nonlinear Model for Growth 3 A Dynamical Systems Modeling References The Kuznets Curve and the Inequality Process 1 Introduction 2 The Kunzets Curve 3 Explaining The Empirical Kuznets Curve 4 The Inequality Process and The Kuznets Curve 5 Conclusions References Monitoring the Teaching - Learning Process via an Entropy Based Index 1 Introduction 2 The Learning Index 3 Results 4 Discussion References Technology Level in the Industrial Supply Chain: Thermodynamic Concept 1 Introduction 2 Technology Level: Thermodynamic Concept 3 The Thermodynamic Model of a Supply Chain 4 Empirical Study 5 Conclusion References Discussions and Comments in Econophys Kolkata IV 1 Economics and Physics 2 Why Econophysics? References 3 Subprime Crisis and Fisher Equation References 4 Quantum Theory of Economics References 4.1 Appendix References Part II Contributions to Quantitative Economics On Multi-Utility Representation of Equitable Intergenerational Preferences 1 Introduction 2 Preliminaries 3 Results References Variable Populations and Inequality-Sensitive Ethical Judgments 1 Introduction 2 Preliminary Concepts 3 Some Axioms For Variable Population Inequality Comparisons 4 On The Possibility Of Consistent Inequality Comparisions 5 Aggregation: Normalization Versus Replication Ivariance? 6 Concluding Observations References A Model of Income Distribution 1 Introduction 2 The Aggregate Saving Maximizing Income Distribution 3 An Alternative Formulation of Aggregate Saving Maximization and the Pareto Income Distribution 4 Conclusions References Appendix Statistical Database of the Indian Economy: Need for New Directions 1 Introduction 2 New Questions and Issues 3 Problems of Coordination, Utilization and Dissemination References Does Parental Education Protect Child Health? Some Evidence from Rural Udaipur 1 Introduction 2 Data 3 Does Parental Education Protect Child Health? 4 The Role of Parental Health Behaviors 5 Summary and Conclusion References Food Security and Crop Diversification: Can West Bengal Achieve Both? 1 Introduction 2 Context 3 Prospects for Crop Diversification 3.1 Requirements of Cereals for Food Security 3.2 Prospects for Diversification 3.3 District-level Projections 4 Concluding Notes References Estimating Equivalence Scales Through Engel Curve Analysis 1 Introduction 2 The Proposed Procedure 3 Data and Results 4 Conclusion References Appendix Testing for Absolute Convergence: A Panel Data Approach 1 Introduction 2 Tests for Convergence in Panel Framework with Cross Sectional Dependence: Conditional and Absolute 2.1 Tests for Conditional Convergence under Cross Sectional Dependence 2.2 Tests for Cross-Sectional Dependence 2.3 Tests for Absolute Convergence under Cross-Sectional Dependence 3 Small Sample Performance 4 Empirical Findings 5 Conclusions References Goodwin’s Growth Cycles: A Reconsideration 1 Introduction 2 Lotka-Volterra System 3 Goodwin’s Growth Model 4 A General Lotka-Volterra Model 5 Cyclical Behavior in Goodwin’s Growth Model 6 Boundary Conditions in Goodwin’s Growth Model 6.1 Original Goodwin’s Model (LVG1) 6.2 Modified Goodwin’s Model (LVG2) 7 Conclusion References Human Capital Accumulation, Economic Growth and Educational Subsidy Policy in a Dual Economy 1 Introduction 2 The Basic Dual Economy Model 3 Optimum Growth Path 3.1 The Optimization Problem of the Rich Individual 3.2 The Optimization Problem of the Poor Individual 3.3 The Optimization Problem of the Government 3.4 Semi Stationary Equilibrium 4 Conclusion References Arms Trade and Conflict Resolution: A Trade-Theoretic Analysis 1 Introduction 2 The Model 3 Foreign Aid, Tax on Arms Exports, and War 4 Conclusion References Trade and Wage Inequality with Endogenous Skill Formation 1 Introduction 2 The Model 3 Autarky 4 Trade 5 Conclusion References Dominant Strategy Implementation in Multi-unit Allocation Problems 1 Introduction 1.1 Related Literature 2 Homogenous Goods Problem: An Impossibility Result 3 Packaging Problem: Possibility Results 4 Conclusion References Allocation through Reduction on Minimum Cost Spanning Tree Games 1 Introduction 2 Minimum Cost Spanning Tree Games 3 Parametric Family of Allocation Rules 4 Results References Unmediated and Mediated Communication Equilibria of Battle of the Sexes with Incomplete Information 1 Introduction 2 The Model 2.1 The Game 2.2 Unmediated Cheap Talk 3 Cheap Talk Equilibrium 4 Mediated Equilibrium 5 Remarks 5.1 Asymmetric Equilibria 5.2 Payoffs 5.3 An Example 6 Conclusion References A Characterization Result on the Coincidence of the Prenucleolus and the Shapley Value 1 Introduction 2 Preliminaries 3 Linear Subspaces of TU Games and the Coincidence 3.1 A Characterization Result References The Ordinal Equivalence of the Johnston Index and the Established Notions of Power 1 Introduction 2 Preliminaries and Definitions 3 The Johnston Preordering and the Influence Relation 4 Conclusion References Reflecting on Market Size and Entry under Oligopoly 1 Introduction 2 The Model 2.1 Cournot Equilibrium 2.2 Monopoly equilibrium 3 The Main Results 3.1 Effects of Changes in Market Size in a Monopoly 3.2 Effects of Changes in Market Size in an Oligopoly 3.2.1 Effects on Profit per Firm and Total Industry Profits 4 Effects of Entry 5 Conclusion References "The combined efforts of the Physicists and the Economists in recent years in analyzing and modelling various dynamic phenomena in monetary and social systems have led to encouraging developments, generally classified under the title of Econophysics. These developments share a common ambition with the already established field of Quantitative Economics. This volume intends to offer the reader a glimpse of these two parallel initiatives by collecting review papers written by well-known experts in the respective research frontiers in one cover. This massive book presents a unique combination of research papers contributed almost equally by Physicists and Economists. Additional contributions from Computer Scientists and Mathematicians are also included in this volume. The book consists of two parts: the first part concentrates on Econophysics problems and the second part stresses on various quantitative issues in Economics. Both parts specialize on frontier problems in Games and Social Choices."--Publisher's website