A Fair Contract for Managing Water Scarcity

In public utilities, under supply constraints, fairness considerations lead to a market failure. This paper characterizes a two-period principal-agent contract for demand management, that mitigates this market failure in urban water systems. The contract is designed as an extensive form mechanism using subgame perfect Nash equilibrium (SPNE) as the solution concept. The contract is fair; and is shown to be economically efficient if, in case of deviation by the agent, the gain to the agent and the loss to the principal are small. It is shown that the assumption can be avoided in an infinite horizon contract.

Fast Public Key Cryptosystem Based On Matrix Rings

A public key cryptosystem is proposed, which is based on the assumption that finding the square root of an element in a large finite ring is computationally infeasible in the absence of a knowledge of the ring structure. The encryption and decryption operations are very fast, and the data expansion is 1:2.