Holography, probe branes and isoperimetric inequalities

In many instances of holographic correspondences between a d-dimensional boundary theory and a (. d+. 1)-dimensional bulk, a direct argument in the boundary theory implies that there must exist a simple and precise relation between the Euclidean on-shell action of a (. d-. 1)-brane probing the bulk geometry and the Euclidean gravitational bulk action. This relation is crucial for the consistency of holography, yet it is non-trivial from the bulk perspective. In particular, we show that it relies on a nice isoperimetric inequality that must be satisfied in a large class of Poincaré-Einstein spaces. Remarkably, this inequality follows from theorems by Lee and Wang.

Other-Regarding Preferences in General Equilibrium

We study competitive market outcomes in economies where agents have other-regarding preferences. We identify a separability condition on monotone preferences that is necessary and sufficient for one’s own demand to be independent of the allocations and characteristics of other agents in the economy. Given separability, it is impossible to identify other-regarding preferences from market behavior: agents be- have as if they had classical preferences that depend only on own consumption in competitive equilibrium. If preferences, in addition, depend only on the final allocation of consumption in society, the Sec- ond Welfare Theorem holds as long as an increase in resources can be distributed such that all agents are better off. Nevertheless, the First Welfare Theorem generally does not hold. Allowing agents to care about their own consumption and the distribution of consump- tion possibilities in the economy, we provide a condition under which agents have no incentive to make direct transfers, and show that this condition implies that competitive equilibria are efficient given prices.