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The Perron-Frobenius Theorem says that if A is a nonnegative square matrix some power of which is positive, ihen there exi^sts an .v,, such thai A ".\/\\A "x\\ converges to x,j for all .v > 0, There are many classical proofs of this theorem, all depending on a connection between positivily of a matrix and properties of ils eigenvalues. A more modern proof,(More)
We consider the mechanism design problem when agents' types are multidimensional and continuous, and their valuations are interdependent. If there are at least three agents whose types satisfy a weak correlation condition, then for any decision rule and any ε > 0 there exist balanced transfers that render truthful revelation a Bayesian ε-equilibrium. A(More)
Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Abstract. Noncooperative games are examined from the point of view of an outside observer who believes that the players(More)
Introduction Every day we face a multitude of risks. Some we have experienced before; some we have not. Some we have contemplated; others have never crossed our mind. In this essay, we define four types of risk based on these two dimensions: whether or not they have occurred and whether or not they have been contemplated. These four classes of risks are(More)
1. What do you consider to be the major role or roles of statistical theory in business and economic statistics. [Gallant] In my opinion, the major role of statistical theory should be to allow ideas from economics, business, finance, etc. to be brought directly to bear in the analysis of data without distortion. For instance, if financial theory suggests(More)
Although risk aversion is a fundamental element in standard theories of lottery choice, asset valuation, contracts, and insurance research has provided little guidance as to how risk aversion should be modeled. To date, there have been several approaches used to assess the importance and nature of risk aversion. Using lottery-choice data from a eld(More)
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