A Behavioral Foundation for Models of Evolutionary Drift

Binmore and Samuelson (1999) have shown that perturbations (drift) are crucial to study the stability properties of Nash equilibria. We contribute to this literature by providing a behavioural foundation for models of evolutionary drift. In particular, this article introduces a microeconomic model of drift based on the similarity theory developed by Tversky (1977), Kahneman and Tversky (1979) and Rubinstein (1988),(1998). An innovation with respect to those works is that we deal with similarity relations that are derived from the perception that each agent has about how well he is playing the game. In addition, the similarity relations are adapted to a dynamic setting. We obtain different models of drift depending on how we model the agent´s assessment of his behaviour in the game. The examples of the ultimatum game and the chain-store game are used to show the conditions for each model to stabilize elements in the component of Nash equilibria that are not subgame- perfect. It is also shown how some models approximate the laboratory data about those games while others match the data.

A Model of Evolutionay Drift

Drift appears to be crucial to study the stability properties of Nash equilibria in a component specifying different out-of-equilibrium behaviour. We propose a new microeconomic model of drift to be added to the learning process by which agents find their way to equilibrium. A key feature of the model is the sensitivity of the noisy agent to the proportion of agents in his player population playing the same strategy as his current one. We show that, 1. Perturbed Payoff-Positive and PayoffMonotone selection dynamics are capable of stabilizing pure non strict Nash equilibria in either singleton or nonsingleton component of equilibria; 2. The model is relevant to understand the role of drift in the behaviour observed in the laboratory for the Ultimatum Game and for predicting outcomes that can be experimentally tested. Hence, the selection dynamics model perturbed with the proposed drift may be seen as well as a new learning tool to understand observed behaviour.

A Non-Parametric Dimension Test of the Term Structure

Published as an article in: Studies in Nonlinear Dynamics & Econometrics, 2004, vol. 8, issue 3, article 6.

Markov Switching Risk Premium and the term structure of interest rates. Empirical evidence from US post-war interest rates

This paper considers the basic present value model of interest rates under rational expectations with two additional features. First, following McCallum (1994), the model assumes a policy reaction function where changes in the short-term interest rate are determined by the long-short spread. Second, the short-term interest rate and the risk premium processes are characterized by a Markov regime-switching model. Using US post-war interest rate data, this paper finds evidence that a two-regime switching model fits the data better than the basic model. The estimation results also show the presence of two alternative states displaying quite different features.

Unemployment rates and population changes in Spain

Published as an article in: Journal of Applied Economics, 2004, vol. VII, pages 47-76.

Switching Regimes in the Term Structure of Interest Rates During U.S. Post-War: A case for the Lucas proof equilibrium?

Published as an article in: Studies in Nonlinear Dynamics & Econometrics, 2004, vol. 8, issue 1, pages 5.

A Drift Card Study in Monterey Bay, California, September 1971 to April 1973: Annual Report, Part 4, 1973

Drift cards were released in Monterey Bay, California, to detect seasonal variations in the California Current system, and seasonal and diurnal wind variations in the immediate vicinity of the bay. About 23% of the cards were recovered, although the recovery rate varied from about 5% in the winter to about 60% in the late summer. Drift card speeds ranged from 1 to 8 km/day, in the winter and summer months respectively. Good agreement was observed between geostrophic current, wind, drogue, and drift card data, although drift cards were observed to be primarily wind driven. A weekend bias in drift card recoveries was observed for the entire period of study; however, it was less pronounced for those cards released during the summer months. Two bogus releases were used to estimate the discovery lag time, reported position accuracy, and longshore drift currents. Diurnal winds were observed during a 24-hour study, and indicated daily variations in the wind field may be as important as seasonal changes in moving surface water. The drift card speed was observed to be about 3% of the wind velocity, and 1 m/sec was estimated as the minimum effective wind. The wind factor, ranging from 2.2% to 4.0%, was used to estimate the actual paths of drift cards and to examine the role of diurnal winds in affecting surface water movement. (PDF contains 79 pages)

Low streamflow in the Myakka River Basin Area in Florida

The Sarasota-Manatee area is a water-short area and the study was undertaken in 1963 in order to determine the storage capability and discharge rates of the Myakka water shed. It was found that many of the streams of the water shed were virtually dry during part of every year. However, the basins of the Myakka lakes, through which the river flows offer some storage potential, that if properly developed would provide a continuance drift of about seven million gallons of water per day of good quality water that would be high in color and temperature upon occasion. With reasonable treatment some of this water could be used to meet the present needs of the rapidly expanding coastal areas. (PDF contains 40 pages.)

Effect of Cattail (Typha domingensis) Extracts, Leachates, and Selected Phenolic Compounds on Rates of Oxygen Production by Salvinia (Salvinia minima)

Salvinia (Salvinia minima Willd.) is a water fern found in Florida waters, usually associated with Lemna and other small free-floating species. Due to its buoyancy and mat-forming abilities, it is spread by moving waters. In 1994, salvinia was reported to be present in 247 water bodies in the state (out of 451 surveyed public waters, Schardt 1997). It is a small, rapidly growing species that can become a nuisance due to its explosive growth rates and its ability to shade underwater life (Oliver 1993). Any efforts toward management of salvinia populations must consider that, in reasonable amounts, its presence is desirable since it plays an important role in the overall ecosystem balance. New management alternatives need to be explored besides the conventional herbicide treatments; for example, it has been shown that the growth of S. molesta can be inhibited by extracts of the tropical weed parthenium (Parthenium hysterophorus) and its purified toxin parthenin (Pande 1994, 1996). We believe that cattail, Typha spp. may be a candidate for control of S. minima infestations. Cattail is an aggressive aquatic plant, and has the ability to expand over areas that weren't previously occupied by other species (Gallardo et al. 1998a and references cited there). In South Florida, T. domingensis is a natural component of the Everglades ecosystem, but in many cases it has become the dominant marsh species, outcompeting other native plants. In Florida public waters, this cattail species is the most dominant emergent species of aquatic plants (Schardt 1997). Several factors enable it to accomplish opportunistic expansion, including size, growth habits, adaptability to changes in the surroundings, and the release of compounds that can prevent the growth and development of other species. We have been concerned in the past with the inhibitory effects of the T. domingensis extracts, and the phenolic compounds mentioned before, towards the growth and propagation of S. minima (Gallardo et al. 1998b). This investigation deals with the impact of cattail materials on the rates of oxygen production of salvinia, as determined through a series of Warburg experiments (Martin et al. 1987, Prindle and Martin 1996).

Estimations, from tagging experiments, of mortality rates and other parameters respecting yellowfin and skipjack tuna

ENGLISH: In this paper, a method of analysis described by Gulland (1963) has been used to estimate the fishing mortality rates of tagged yellowfin and skipjack tuna for specific areas and years. Fishing mortality rates obtained for tagged tunas will also represent those for the entire population from which the tagged fishes were drawn, provided the assumptions used and corrections made for these analyses are valid. Total mortality rates of tagged fishes have also been computed. These are not assumed to be directly equivalent to the total mortality rates of the untagged populations,since tagged fishes are subject to additional types of attrition. These additional sources of mortality are also examined in this study. SPANISH: En el presente trabajo se ha usado un método de análisis descrito por Gulland (1963), para estimar las tasas de mortalidad de pesca de los atunes aleta amarilla y barrilete marcados en áreas y años específicos. Las tasas de mortalidad de pesca obtenidas en atunes marcados representarán también las de toda la población, de la cual fueron extraídos, previendo que las suposiciones usadas y las correcciones hechas para estos análisis sean válidas. Las tasas de mortalidad total de los peces marcados también han sido computadas. No se supone que éstas sean directamente equivalentes a las tasas de mortalidad total de las poblaciones no marcadas, ya que los peces marcados están sujetos también a otros tipos de pérdida. Estas otras causas de mortalidad son examinadas también en el presente estudio.

Effects of commercial fishing regulations on stranding rates of bottlenose dolphin (Tursiops truncatus).

Fisheries management actions taken to protect one species can have unintended, and sometimes positive, consequences on other species. For example, regulatory measures to reduce fishing effort in the winter gillnet fishery for spiny dogfish (Squalus acanthias) off North Carolina (NC) also led to decreases in the number of bycaught bottlenose dolphins (Tursiops truncatus). This study found that a marked decrease in fishing effort for spiny dogfish in NC also corresponded with a marked decrease in winter stranding rates of bottlenose dolphins with entanglement lesions (P= 0.002). Furthermore, from 1997 through 2002, there was a significant positive correlation (r2 = 0.79; P= 0.0003) between seasonal bycatch estimates of bottlenose dolphins in gill nets and rates of stranded dolphins with entanglement lesions. With this information, stranding thresholds were developed that would enable the detection of those increases in bycatch in near real-time. This approach is valuable because updated bycatch estimates from observer data usually have a time-lag of two or more years. Threshold values could be used to detect increases in stranding rates, triggering managers immediately to direct observer effort to areas of potentially high bycatch or to institute mitigation measures. Thus, observer coverage and stranding investigations can be used in concert for more effective fishery management.