Related papers: Managers' Choice of Disclosure Complexity
The emergence of a complex, large-scale organisation of cosmic matter into the Cosmic Web is a beautiful exemplification of how complexity can be produced by simple initial conditions and simple physical laws. In the epoch of Big Data in…
Search prominence may have a detrimental impact on a firm's profits in the presence of costly product returns. We analyze the impact of search prominence on firm profitability in a duopoly search model, considering the presence of costly…
The concept of multifractality offers a powerful formal tool to filter out multitude of the most relevant characteristics of complex time series. The related studies thus far presented in the scientific literature typically limit themselves…
We study the pricing of credit derivatives with asymmetric information. The managers have complete information on the value process of the firm and on the default threshold, while the investors on the market have only partial observations,…
This paper delves into financial markets that incorporate a novel form of heterogeneity among investors, specifically in terms of their beliefs regarding the reliability of signals in the business cycle economy model, which may be biased.…
Three decades of research in communication complexity have led to the invention of a number of techniques to lower bound randomized communication complexity. The majority of these techniques involve properties of large submatrices…
Algorithmic systems make decisions that have a great impact in our lives. As our dependency on them is growing so does the need for transparency and holding them accountable. This paper presents a model for evaluating how transparent these…
The first section starts with the basic definitions following mainly the notations of the book written by E. Kushilevitz and N. Nisan. At the end of the first section I examine tree-balancing. In the second section I summarize the…
We consider the disclosure problem of a sender with a large data set of hard evidence who wants to persuade a receiver to take higher actions. Because the receiver will make inferences based on the distribution of the data they see, the…
An embodied agent constantly influences its environment and is influenced by it. We use the sensorimotor loop to model these interactions and thereby we can quantify different information flows in the system by various information theoretic…
We present an experimental and simulated model of a multi-agent stock market driven by a double auction order matching mechanism. Studying the effect of cumulative information on the performance of traders, we find a non monotonic…
In financial asset management, choosing a portfolio requires balancing returns, risk, exposure, liquidity, volatility and other factors. These concerns are difficult to compare explicitly, with many asset managers using an intuitive or…
In this paper we study the complexity of solving a problem when a solution of a similar instance is known. This problem is relevant whenever instances may change from time to time, and known solutions may not remain valid after the change.…
Implicit Computational Complexity makes two aspects implicit, by manipulating programming languages rather than models of com-putation, and by internalizing the bounds rather than using external measure. We survey how automata theory…
We study information aggregation in a dynamic trading model with partially informed traders. Ostrovsky [2012] showed that `separable' securities aggregate information in all equilibria, however, determining whether a security is separable…
We explain how recent developments in the fields of realisability models for linear logic -- or geometry of interaction -- and implicit computational complexity can lead to a new approach of implicit computational complexity. This…
Behavioral Finance has become a challenge to the scientific community. Based on the assumption that behavioral aspects of investors may explain some features of the Stock Market, we propose an agent based model to study quantitatively this…
How should a court resolve a shareholder-management dispute after an unexpected price drop, when it is suspected that at an earlier time management chose not to update (disclose to) the market about a material event that was privately…
A new simple model of financial market is proposed, based on the sequential and inter-temporal nature of trader-trader interaction, and on a new simple trading strategy space. In this pattern-based speculation model, the traders open and…
The apparent dichotomy between information-processing and dynamical approaches to complexity science forces researchers to choose between two diverging sets of tools and explanations, creating conflict and often hindering scientific…