Dynamic mechanism design for markets with strategic resources

The assignment of tasks to multiple resources becomes an interesting game theoretic problem, when both the task owner and the resources are strategic. In the classical, nonstrategic setting, where the states of the tasks and resources are observable by the controller, this problem is that of finding an optimal policy for a Markov decision process (MDP). When the states are held by strategic agents, the problem of an efficient task allocation extends beyond that of solving an MDP and becomes that of designing a mechanism. Motivated by this fact, we propose a general mechanism which decides on an allocation rule for the tasks and resources and a payment rule to incentivize agents' participation and truthful reports. In contrast to related dynamic strategic control problems studied in recent literature, the problem studied here has interdependent values: the benefit of an allocation to the task owner is not simply a function of the characteristics of the task itself and the allocation, but also of the state of the resources. We introduce a dynamic extension of Mezzetti's two phase mechanism for interdependent valuations. In this changed setting, the proposed dynamic mechanism is efficient, within period ex-post incentive compatible, and within period ex-post individually rational.

Combining ``chimie douce'' and green principles for the developing world: Improving industrial viability of photocatalytic water remediation

We highlight the need for a comprehensive, multi-disciplinary approach for the development of cost-effective water remediation methods. Combining ``chimie douce'' and green chemical principles seems essential for making these technologies economically viable and socially relevant (especially in the developing world). A comprehensive approach to water remediation will take into account issues such as nanotoxicity, chemical yield, cost, and ease of deployment in reactors. By considering technological challenges that lie ahead, we will attempt to identify directions that are likely to make photocatalytic water remediation a more global technology than it currently is. (C) 2013 Elsevier Ltd. All rights reserved

How design process for the Base of the Pyramid differs from that for the Top of the Pyramid

The base (BOP) and the top (TOP) of the world income pyramid represent the poor people and the people from developed countries, respectively. The design of products for the BOP is an important ingredient of the poverty reduction approach that combines business development with poverty alleviation. However, the current understanding of the design for the BOP is limited. This study, using a protocol analysis, compared design processes for the BOP and TOP markets. The results indicate the difference between the design processes for these markets in terms of the design strategy employed by the designers (i.e. problem driven, solution driven strategy), their requirements handling behaviour, and their information behaviour. (C) 2014 Elsevier Ltd. All rights reserved.

Lack of Critical Slowing Down Suggests that Financial Meltdowns Are Not Critical Transitions, yet Rising Variability Could Signal Systemic Risk

Complex systems inspired analysis suggests a hypothesis that financial meltdowns are abrupt critical transitions that occur when the system reaches a tipping point. Theoretical and empirical studies on climatic and ecological dynamical systems have shown that approach to tipping points is preceded by a generic phenomenon called critical slowing down, i.e. an increasingly slow response of the system to perturbations. Therefore, it has been suggested that critical slowing down may be used as an early warning signal of imminent critical transitions. Whether financial markets exhibit critical slowing down prior to meltdowns remains unclear. Here, our analysis reveals that three major US (Dow Jones Index, S&P 500 and NASDAQ) and two European markets (DAX and FTSE) did not exhibit critical slowing down prior to major financial crashes over the last century. However, all markets showed strong trends of rising variability, quantified by time series variance and spectral function at low frequencies, prior to crashes. These results suggest that financial crashes are not critical transitions that occur in the vicinity of a tipping point. Using a simple model, we argue that financial crashes are likely to be stochastic transitions which can occur even when the system is far away from the tipping point. Specifically, we show that a gradually increasing strength of stochastic perturbations may have caused to abrupt transitions in the financial markets. Broadly, our results highlight the importance of stochastically driven abrupt transitions in real world scenarios. Our study offers rising variability as a precursor of financial meltdowns albeit with a limitation that they may signal false alarms.

Business leadership in today's world : a matter of virtues

Resumen: La autora centra su artículo en lo que considera la dimensión práctica del liderazgo empresarial propuesta por el documento pontificio: el actuar tendiendo a la virtud. Se destaca la importancia que el documento pontificio concede a las virtudes fundamentales en el desarrollo del bien común en el marco de la ética empresarial, que va más allá de un mero código de conducta. La vida virtuosa florece cuando el hombre descubre su verdadera vocación y la asume en cada una de sus acciones. El artículo expresa las cualidades de esa virtud, y las razones por las cuales la cultura empresarial debe tomar raíces en ella

Reseña bibliográfica : Rodrik, Dani (2011) The globalization paradox. Democracy and the future of the world economy. W. W. Norton & Co. New York, USA

Dani Rodrik es un conocido economista, nacido en Turquía, Profesor de Economía Política Internacional en la John F. Kennedy School of Government, de Harvard University. Su trabajo se ha destacando en temas de economía internacional, desarrollo económico y economía política. Su área central de investigación se centra en la explicación de que constituye una buena política económica y por qué algunos gobiernos son mejores que otros al adoptar distintas políticas, logrando distintos resultados en materia de desarrollo económico. En este sentido, es un defensor de la estrategia “productivista” del Este de Asia, asignando al Estado y a determinada política económica activa un rol central.

Terrorism and the World Economy

Published as an article in: European Economic Review, 2008, vol. 52, issue 1, pages 1-27.