Two-production-period in a duopoly with nonprofit and for-profit firms

We investigate endogenous roles in a competition between a nonprofit firm and a for-profit firm in a homogeneous goods market, by allowing two production periods. We find that the Cournot-type equilibrium and one Stackelberg-type equilibrium where the nonprofit firm becomes the follower exist; however, another tackelberg-type equilibrium where the nonprofit firm becomes the leader does not exist.

Mathematical modelling of shallow flows: closure models drawn from grain-scale mechanics of sediment transport and flow hydrodynamics

Canadian Journal of Civil Engineering 36(10) 1605–16

Strategic trade policy and signaling costs with differentiated goods

We consider a trade policy model, where the costs of the home firm are private information but can be signaled through the output levels of the firm to a foreign competitor and a home policymaker. We compute the separating equilibrium and the Bayesian Nash equilibrium, and we compare the subsidies, firms’ expected profits and home government’s welfare in both equilibria, for different values of the own price effect parameter.

Sectorization: measures and an electromagnetism based approach

Sectorization means dividing a set of basic units into sectors or parts, a procedure that occurs in several contexts, such as political, health and school districting, social networks and sales territory or airspace assignment, to achieve some goal or to facilitate an activity. This presentation will focus on three main issues: Measures, a new approach to sectorization problems and an application in waste collection. When designing or comparing sectors different characteristics are usually taken into account. Some are commonly used, and they are related to the concepts of contiguity, equilibrium and compactness. These fundamental characteristics will be addressed, by defining new generic measures and by proposing a new measure, desirability, connected with the idea of preference. A new approach to sectorization inspired in Coulomb’s Law, which establishes a relation of force between electrically charged points, will be proposed. A charged point represents a small region with specific characteristics/values creating relations of attraction/repulsion with the others (two by two), proportional to the charges and inversely proportional to their distance. Finally, a real case about sectorization and vehicle routing in solid waste collection will be mentioned.

Innovation and environmental policy: Clean vs. dirty technical change

We study a two sector endogenous growth model with environmental quality with two goods and two factors of production, one clean and one dirty. Technological change creates clean or dirty innovations. We compare the laissez-faire equilibrium and the social optimum and study first- and second-best policies. Optimal policy encourages research toward clean technologies. In a second-best world, we claim that a portfolio that includes a tax on the polluting good combined with optimal innovation subsidy policies is less costly than increasing the price of the polluting good alone. Moreover, a discriminating innovation subsidy policy is preferable to a non-discriminating one.

Dual track sell-out: Signaling through IPO and Underpricing

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics

Inequity version and team incentives

We study optimal contracts in a simple model where employees are averse to inequity as modelled by Fehr and Schmidt (1999). A "selfish" employer can profitably exploit such preferences among its employees by offering contracts which create inequity off-equilibrium and thus, they would leave employees feeling envy or guilt when they do not meet the employer's demands. Such contracts resemble team and relative performance contracts, and thus we derive conditions under which it may be beneficial to form work teams of employees with distributional concerns who were previously working individually. Similar results are obtained for status-seeking and efficiency concerns preferences.

Correlated equilibria, good and bad: an experimental study

We report results from an experiment that explores the empirical validity of correlated equilibrium, an important generalization of the Nash equilibrium concept. Specifically, we seek to understand the conditions under which subjects playing the game of Chicken will condition their behavior on private, third–party recommendations drawn from known distributions. In a “good–recommendations” treatment, the distribution we use is a correlated equilibrium with payoffs better than any symmetric payoff in the convex hull of Nash equilibrium payoff vectors. In a “bad–recommendations” treatment, the distribution is a correlated equilibrium with payoffs worse than any Nash equilibrium payoff vector. In a “Nash–recommendations” treatment, the distribution is a convex combination of Nash equilibrium outcomes (which is also a correlated equilibrium), and in a fourth “very–good–recommendations” treatment, the distribution yields high payoffs, but is not a correlated equilibrium. We compare behavior in all of these treatments to the case where subjects do not receive recommendations. We find that when recommendations are not given to subjects, behavior is very close to mixed–strategy Nash equilibrium play. When recommendations are given, behavior does differ from mixed–strategy Nash equilibrium, with the nature of the differ- ences varying according to the treatment. Our main finding is that subjects will follow third–party recommendations only if those recommendations derive from a correlated equilibrium, and further, if that correlated equilibrium is payoff–enhancing relative to the available Nash equilibria.

Unemployment Risk and Wage Differentials

Workers in less-secure jobs are often paid less than identical-looking workers in more secure jobs. We show that this lack of compensating differentials for unemployment risk can arise in equilibrium when all workers are identical and firms differ only in job security (i.e. the probability that the worker is not sent into unemployment). In a setting where workers search for new positions both on and off the job, the worker’s marginal willingness to pay for job security is endogenous, increasing with the rent received by a worker in his job, and depending on the behavior of all firms in the labor market. We solve for the labor market equilibrium and find that wages increase with job security for at least all firms in the risky tail of the distribution of firm-level unemployment risk. Unemployment becomes persistent for low-wage and unemployed workers, a seeming pattern of ‘unemployment scarring’ created entirely by firm heterogeneity. Higher in the wage distribution, workers can take wage cuts to move to more stable employment.

Stability analysis of the 2007 Chehalis lake landslide based on long-range terrestrial photogrammetry and airborne LIDAR data

On December 4th 2007, a 3-Mm3 landslide occurred along the northwestern shore of Chehalis Lake. The initiation zone is located at the intersection of the main valley slope and the northern sidewall of a prominent gully. The slope failure caused a displacement wave that ran up to 38 m on the opposite shore of the lake. The landslide is temporally associated with a rain-on-snow meteorological event which is thought to have triggered it. This paper describes the Chehalis Lake landslide and presents a comparison of discontinuity orientation datasets obtained using three techniques: field measurements, terrestrial photogrammetric 3D models and an airborne LiDAR digital elevation model to describe the orientation and characteristics of the five discontinuity sets present. The discontinuity orientation data are used to perform kinematic, surface wedge limit equilibrium and three-dimensional distinct element analyses. The kinematic and surface wedge analyses suggest that the location of the slope failure (intersection of the valley slope and a gully wall) has facilitated the development of the unstable rock mass which initiated as a planar sliding failure. Results from the three-dimensional distinct element analyses suggest that the presence, orientation and high persistence of a discontinuity set dipping obliquely to the slope were critical to the development of the landslide and led to a failure mechanism dominated by planar sliding. The three-dimensional distinct element modelling also suggests that the presence of a steeply dipping discontinuity set striking perpendicular to the slope and associated with a fault exerted a significant control on the volume and extent of the failed rock mass but not on the overall stability of the slope.

Education for science and science for education: more than a play upon words

In the celebration of the Oswaldo Cruz Institute centenary, we wanted to stress our concern with the relationship between two of its missions: research and education. What are the educational bases required for science and technology activities on health sciences for the future years? How can scientists collaborate to promote the popularization of academic knowledge and to improve a basic education for citizenship in an ethic and humanistic view? In this article we pointed out to need of commitment, even in the biomedical post-graduation level, of a more integrated philosophy that would be centered on health education, assuming health as a dynamic biological and social equilibrium and emphasizing the need of scientific popularization of science in a cooperative construction way, instead of direct transfer of knowledge, preserving also macro views of health problems in the development of very specific studies. The contemporary explosion of knowledge, particularly biological knowledge, imposes a need of continuous education to face the growing illiteracy. In order to face this challenge, we think that the Oswaldo Cruz Institute honors his dialectic profile of tradition and transformation, always creating new perspectives to disseminate scientific culture in innovated forms.

Two-sided learning in new keynesian models: dynamics, (lack of) convergence and the value of information

This paper investigates the role of learning by private agents and the central bank (two-sided learning) in a New Keynesian framework in which both sides of the economy have asymmetric and imperfect knowledge about the true data generating process. We assume that all agents employ the data that they observe (which may be distinct for different sets of agents) to form beliefs about unknown aspects of the true model of the economy, use their beliefs to decide on actions, and revise these beliefs through a statistical learning algorithm as new information becomes available. We study the short-run dynamics of our model and derive its policy recommendations, particularly with respect to central bank communications. We demonstrate that two-sided learning can generate substantial increases in volatility and persistence, and alter the behavior of the variables in the model in a signifficant way. Our simulations do not converge to a symmetric rational expectations equilibrium and we highlight one source that invalidates the convergence results of Marcet and Sargent (1989). Finally, we identify a novel aspect of central bank communication in models of learning: communication can be harmful if the central bank's model is substantially mis-specified

Introduced ants in Galápagos (Floreana Island) : importance of competition, coexistence and agressive behaviors

Abstract Invasive species represent with fragmentation of habitat the most serious threats to biodiversity in the world. Galápagos Archipelago, as most oceanic islands, suffers a high rate of introduced animals and plants that affect equilibrium and biodiversity of this unique biota. Ants rank among the most devastating invaders. Their social organization confer them a high ability to adapt and to spread in new environments forming rapidly populous communities. We studied the ant community of Floreana Island composed mainly of introduced species (at least 1 S). Introduction events occurred successively during last century. The last record is Monomorium destructor arrived in the eighties. Our aim is to investigate the modalities of interaction and coexistence of these introduced species. We highlighted the competition hierarchy of the coexisting species using attractive food baits. Two species behave as competitively dominant by monopolizing an important part of resources. They are M. destructor restricted to a small area and the fire ant Solenopsis geminata widely distributed on the island. Then we evaluated the relative importance of abiotic factors and interspecific competition in structuring the community. Ecological data were collected and presence and abundance of species were estimated using different methods in a wide range of habitats. Several species showed preferences either for arid or for humid areas. The little fire ant Wasmannia auropunctata, awell-known devastating species when introduced, was exclusively found in moist habitat in and around the agricultural area situated in the upper and central part of thé island. It coexists with other species in several parts but in a restricted perimeter it excludes all other ants and worker's density on the ground is nearly 70 times higher than ant's density in similar habitats occupied by several species. But most opportunist tramp species establish everywhere without particular ecological requirement. Analyses of species co-occurrences at various levels didn't reveal any marked effect of competition in structuring ant's assemblages. We supposed that the lack ofcompetition-derived structure has to be attributed to the dynamic of the system. Indeed, across the successive census of 1996, 2003, 2004 and 2005, species distributions and abundances appeared to be highly variables. In particular harsh conditions occurring in dry season in certain parts seem to be limiting to S. geminatai. We suggest that huge variations in the local distribution of the dominant S. geminata disrupt the community organization. Finally we conducted artificial ant confrontations to evaluate to what extend an aggressive behavior at the worker level maybe linked to the ecological success of a species on the island. S. geminata was rather indifferent when confronted to a submissive species on food sources, suggesting that its competitive dominance is largely due to a numerical superiority. On the other hand M. destructor exhibits a strong agonistic behavior in similar confrontations. As soon as the presence of a competitor is detected, most workers were observed to abandon foraging and to take part in physical aggressions. Since it is still restricted nearby its introduction spot two decades after its arrival, we suggest that the energetic cost of such an aggressive behavior prevent it to spread on that island already highly colonized. Dominant invasive species such as the fire ants S. geminata and W. auropunctata have negative impacts on Galápagos fauna, disturbing the hatching of land tortoises and birds. But very little is known about the impact of other exotic ants. Indeed, impact on arthropods and generally on ground-dwelling organisms is very diffcult to evaluate. As a consequence of the dynamic character of Floreana I. ant community it is difficult to build models or to málce predictions on evolution of introduced ant fauna. But Camponotus macilentus, an abundant endemic species seems today to be little affected by introduced ant species thanks to its strong interference competition ability and its preference for arid and harsh environments. Résumé Les espèces envahissantes représentent, avec la fragmentation du paysage, la plus grande menace pour la biodiversité. L'archipel des Galápagos, comme la plupart des îles du Pacifique, compte un grand nombre d'espèces introduites qui menacent la biodiversité de ce milieu unique.. Les fourmis sont parmi les envahisseurs les plus dévastateurs. Leur organisation sociale leur permet de s'adapter et de se propager pour devenir rapidement abondantes. Nous avons étudié la communauté de fourmis sur l'île de Floreana principalement composée d'espèces introduites (au moins 15). Les introductions se sont succédées au cours du siècle précédent. La dernière espèce recensée est Monomorium destructor introduite dans les années 80. Notre objectif est de mettre à jour les modalités des interactions et de la coexistence de ces espèces introduites. Nous avons mis en évidence la hiérarchie de compétition des différentes espèces à l'aide d'appâts de nourriture. Deux espèces se comportent de façon dominante en monopolisant une part importante des ressources. Ce sont M. destructor, restreintes à un petit périmètre, et la fourmi de feu Solenopsis geminata, largement distribuée sur l'île. Nous avons évalué l'importance relative des facteurs abiotiques et de la compétition interspécifique dans la structuration des peuplements. Des données écologiques ont été collectées et la présence et l'abondance des espèces ont été estimées à l'aide de trois méthodes au sein d'une grande diversité d'habitats. Plusieurs espèces .montrent des préférences soit pour les milieux humides, soit pour les milieux arides. La petite fourmi de feu Wasmannia auropunctata, une espèce connue pour être dévastatrice dans ses sites d'introduction, est présente exclusivement dans les habitats humides dans et à proximité de la zone agricole située dans la partie centrale de l'île. Elle coexiste en plusieurs points avec d'autres espèces mais au sein d'un périmètre restreint elle exclut toute autre fourmi et atteint des densités record au sol presque 70 fois supérieures aux densités de fourmis observées sur les sites voisins occupés par plusieurs espèces. Mais la plupart des espèces vagabondes opportunistes s'établissent partout sans exigences écologiques particulières. Des analyses de cooccurrence d'espèces à plusieurs niveaux n'ont pas révélé de rôle marqué de la compétition dans la structuration des communautés. Nous supposons que l'absence d'une telle structure doit être attribuée à la dynamique du système. En effet, au cours des différents recensements de 1996-1997, 2003, 2004 et 2005, la distribution et l'abondance des espèces était très variable. En particulier, les conditions rudes qui règnent dans la zone aride durant la saison sèche semblent affecter particulièrement S. geminata. Nous suggérons que de fortes variations dans la distribution de l'espèce dominante perturbent l'orgaiùsation des communautés. Finalement nous avons effectué des confrontations artificielles pour évaluer dans quelle mesure un comportement agressif au niveau de l'ouvrière peut être lié au succès écologique d'une espèce sur l'île. S. geminata montre très peu de réaction face à une espèce subordonnée sur une même source de nourriture, ce qui laisse supposer que sa dominance est largement due à sa supériorité numérique. Par contre, dans des conditions similaires, M. destructor est fortement agressive. En présence d'un compétiteur, la plupart des ouvrières renoncent très vite à leur activité de fourragement pour agresser les individus de l'autre espèce. Puisque deux décennies après son introduction elle est toujours confinée à son point d'arrivée, nous supposons que le coût en énergie et en ouvrières de ce comportement très agressif est un obstacle à son expansion sur cette île déjà fortement colonisée. Les espèces envahissantes dominantes comme les fourmis de feu S. geminata et W. auropunctata sont connues pour leur impact négatif sur la faune des Galápagos, entre autre sur les jeunes des tortues terrestres et des oiseaux. Mais nous savons très peu de choses sur l'impact des autres espèces de fourmis introduites. En effet, l'impact sur les arthropodes, et plus généralement sur la faune du sol, est très difficile à évaluer. En raison du caractère dynamique de la communauté de fourmi de Floreana, il est difficile de construire des modèles et de faire des prédictions sur l'évolution des peuplements de fourmis introduites. Mais Camponotus macilentus, une espèce endémique abondante, semble aujourd'hui peu affectée par les espèces introduites grâce à ses capacités de compétition par interférence et sa préférence pour les milieux arides. Resumen Las, especies invasoras representan, junto con la fragmentación del paisaje, la mayor amenaza para la biodiversidad. El archipiélago de Galápagos, como la mayoría de las islas del Pacífico, cuenta con un gran número de especies introducidas que amenazan la biodiversidad de este lugar único. Las hormigas son uno de los invasores más devastadores. Su organización social les permite adaptarse y propagarse para ser rápidamente abundante. Estudiamos la comunidad de hormigas de la isla Floreana principalmente compuesta de especies introducidas (al menos 15). Las introducciones se sucedieron durante el siglo anterior. La última especie contabilizada es Monomorium destructor introducida en los años 80. Nuestro objetivo es poner al día las modalidades de las interacciones y de la coexistencia de estas especies introducidas. Pusimos de relieve la jerarquía de competencia de las distintas especies con ayuda de cebos de comida. Dos especies se implican de manera dominante monopolizando una parte importante de los recursos. Son M. destructor, limitado a un pequeño perímetro, y la hormiga de fuego Solenopsis geminata; ampliamente distribuida por la isla. Evaluamos la importancia relativa de los factores abióticos y de la competencia interespecífica en la estructuración de la communidad. Se recogieron algunos datos ecológicos y se consideraron la presencia y la abundancia de las especies con ayuda de tres métodos en una gran diversidad de hábitats. Varias especies muestran preferencias o por los medios húmedos, o por los medios áridos. La pequeña hormiga de fuego Wasmannia auropunctata, una especie conocida por ser devastadora en sus lugares de introducción, está presente exclusivamente en los hábitats húmedos y cerca de la zona agrícola situada en la parte central de la isla. Coexiste en varios puntos con otras especies pero en un perímetro limitado excluye a cualquier otra hormiga y alcanza densidades en el suelo casi 70 veces superiores a las densidades de hormigas observadas en los lugares vecinos ocupados por varias especies. Pero la mayoría de las especies vagabundas oportunistas se establecen por todas partes sin exigencias ecológicas particulares. Análisis de cooccurrencía de las especies a varios niveles no revelaron una grande importancía de la competencia en la estructuración de las comunidades. Suponemos que la ausencia de tal estructura Bebé ser por la dinámica del sistema. Efectivamente, durante los distintos censos de 1996-1997, 2003,.2004 y 2005, la distribución ? la abundancia de las especies eran muy variables. En particular, las condiciones drásticas que reinan en la zona árida durante la temporada seca parecen afectar especialmente a S. geminata. Sugerimos que fuertes variaciones en la distribución de la especie dominante perturben la organización de las comunidades. Finalmente efectuamos confrontaciones artificiales para evaluar hastá que punto un comportamiento agresivo a nivel de la obrera puede explicar el éxito ecológico de una especie en la isla. S. geminata muestra muy poca reacción ante una especie subordinada mientras comparten la misma comida, lo que deja suponer que su dominancia se debe a su superioridad numérica. Por el contrario, en condiciones similares, M. destructor es muy agresivo. En presencia de otra especie, la mayóría de las obreras renuncian muy rápidamente a alimentarse para atacar a los individuos de la otra especie. Puesto que dos décadas después de su introducción todavía se confina en su punto de llegada, suponemos que el coste en energía y en obreras de este comportamiento muy agresivo es un obstáculo a su extensión en esta isla ya muy colonizada. Las especiés invasoras dominantes como las hormigas de fuego S. geminata y W. auropunctata son conocidas por su impacto negativo en la fauna de Galápagos, entre otras cosas sobre los juveniles de las tortugas terrestres y pájaros. Pero sabemos muy poco sobre el impacto de las otras especies de hormigas introducidas. Efectivamente es muy difïcil de evaluar el impacto en los artrópodos, y más generalmente en la fauna del suelo. Debido al carácter dinámico de la comunidad de hormiga de Floreana, es diEcil construir modelos y hacer predicciones sobre la evolución de las poblaciones de hormigas introducidas. Pero Camponotus macilentus, una especie endémica abundante, parece poco afectadá hoy por las especies introducidas gracias a sus capacidades de competencia por interferencia y su preferencia por los medios áridos.

Two-sided learning in New Keynesian models: Dynamics, (lack of) convergence and the value of information

This paper investigates the role of learning by private agents and the central bank(two-sided learning) in a New Keynesian framework in which both sides of the economyhave asymmetric and imperfect knowledge about the true data generating process. Weassume that all agents employ the data that they observe (which may be distinct fordifferent sets of agents) to form beliefs about unknown aspects of the true model ofthe economy, use their beliefs to decide on actions, and revise these beliefs througha statistical learning algorithm as new information becomes available. We study theshort-run dynamics of our model and derive its policy recommendations, particularlywith respect to central bank communications. We demonstrate that two-sided learningcan generate substantial increases in volatility and persistence, and alter the behaviorof the variables in the model in a significant way. Our simulations do not convergeto a symmetric rational expectations equilibrium and we highlight one source thatinvalidates the convergence results of Marcet and Sargent (1989). Finally, we identifya novel aspect of central bank communication in models of learning: communicationcan be harmful if the central bank's model is substantially mis-specified.

Information acquisition and entry

Before firms decide whether to enter a new market or not, they havethe opportunity to buy information about several variables that might affectthe profitability of this market. Our model differs from the existing literatureon endogenous information acquisition in two respects: (1) there is uncertaintyabout more than one variable, and (2) information is acquired secretly. Whenthe cost of acquiring information is small, entry decisions will be as ifthere was perfect information. Equilibria where each firm acquires only asmall amount of information are more robust than the socially undesirableequilibria where all firms gather all information. Examples illustrate theimportance of assumptions (1) and (2).