Paper's Title:

Expected Utility with Subjective Events

Author(s):

Jacob Gyntelberg and Frank Hansen

Bank for International Settlements,
Basel,
Switzerland

jacob.gyntelberg@bis.org

Tohoku University, Institute for International Education,
Sendai,
Japan

frank.hansen@m.tohoku.ac.jp

Abstract:

We provide a new theory of expected utility with subjective events modeled by a lattice of projections. This approach allows us to capture the notion of a ``small world'' as a context dependent or local state space embedded into a subjective set of events, the ``grand world''. For each situation the decision makers' subjective ``small world'' reflects the events perceived to be relevant for the act under consideration. The subjective set of events need not be representable by a classical state space. Maintaining preference axioms similar in spirit to the classical axioms, we obtain an expected utility representation which is consistent across local state spaces and separates subjective probability and utility. An added benefit is that this alternative expected utility representation allows for an intuitive distinction between risk and uncertainty.

Paper's Title:

A general theory of decision making

Author(s):

Frank Hansen

Department of Economics,
University of Copenhagen,
Studiestraede 6, DK-1455 Copenhagen K
Denmark Frank.Hansen@econ.ku.dk
URL: http://www.econ.ku.dk/okofh

Abstract:

We formulate a general theory of decision making based on a lattice of observable events, and we exhibit a large class of representations called the general model. Some of the representations are equivalent to the so called standard model in which observable events are modelled by an algebra of measurable subsets of a state space, while others are not compatible with such a description. We show that the general model collapses to the standard model, if and only if an additional axiom is satisfied. We argue that this axiom is not very natural and thus assert that the standard model may not be general enough to model all relevant phenomena in economics. Using the general model we are (as opposed to Schmeidler [16]) able to rationalize Ellsberg's paradox without the introduction of non-additive measures.

Paper's Title:

Hardy Type Inequalities via Convexity - The Journey so Far

Author(s):

 James A. Oguntuase and Lars-Erik Persson

 Department of Mathematics, University of Agriculture,
 P. M. B. 2240, Abeokuta, Nigeria.

Department of Mathematics, Luleå University of Technology,
SE-971 87, Luleå , Sweden.

oguntuase@yahoo.com, larserik@sm.luth.se .
 

Abstract:

It is nowadays well-known that Hardy's inequality (like many other inequalities) follows directly from Jensen's inequality. Most of the development of Hardy type inequalities has not used this simple fact, which obviously was unknown by Hardy himself and many others. Here we report on some results obtained in this way mostly after 2002 by mainly using this fundamental idea.  

Paper's Title:

Jordan Canonical Form of Interval Matrices and Applications

Author(s):

S. Hema Surya, T. Nirmala and K. Ganesan

Department of Mathematics, College of Engineering and Technology,
SRM Institute of Science and Technology,
Kattankulathur,
Chennai-603203,
India.
E-mail: nirmalat@srmist.edu.in
URL: https://www.srmist.edu.in/faculty/dr-t-nirmala/

Abstract:

A square interval matrix over R can be converted to diagonal form if certain prerequisites are satisfied. However not all square matrices can be diagonalized. As a consequence, we strive the next simplest form to which it can be reduced while retaining important properties such as eigenvalues, rank, nullity, and so on. It turns out that any real interval matrix has a Jordan Canonical Form (JCF) over E if it has n interval eigenvalues in IR. We discuss in this paper a method for computing the Jordan canonical form of an interval matrix using a new pairing technique and a new type of interval arithmetic that will make classifying and analyzing interval matrices easier and more efficient. We conclude with a numerical example that supports the theory and application of predator-prey model.

Paper's Title:

Normalized Truncated Levy models applied to the study of Financial Markets

Author(s):

M. C. Mariani, K. Martin, D. W. Dombrowski and D. Martinez

Department of Mathematical Sciences and Department of Finance,
New Mexico State University, P.O. Box 30001
Department 3MB Las Cruces, New Mexico 88003-8001
USA.
mmariani@nmsu.edu
kjmartin@nmsu.edu