Out of equilibrium dynamics with decentralized exchange cautious trading and convergence to efficiency

Is the result that equilibrium trading outcomes are efficient in markets without frictions robust to a scenario where agents' beliefs and plans aren't already aligned at their equilibrium values? In this paper, starting from a situation where agents' beliefs and plans aren't already aligned at their equilibrium values, we study whether out of equilibrium trading converges to efficient allocations. We show that out-of-equilibrium trading does converge with probability 1 to an efficient allocation even when traders have limited information and trade cautiously. In economies where preferences can be represented by Cobb-Douglass utility functions, we show, numerically, that the rate of convergence will be exponential. We show that experimentation leads to convergence in some examples where multilateral exchange is essential to achieve gains from trade. We prove that experimentation does converge with probability 1 to an efficient allocation and the speed of convergence remains exponential with Cobb-Douglass utility functions

Influence of the nature of confinement on the melting of Wigner molecules in quantum dots

We analyze the quantum melting of two-dimensional Wigner molecules (WM) in confined geometries with distinct symmetries and compare it with corresponding thermal melting. Our findings unfold complementary mechanisms that drive the quantum and thermal crossovers in a WM and show that the symmetry of the confinement plays no significant role in determining the quantum crossover scale $n_X$. This is because the zero-point motion screens the boundary effects within short distances. The phase diagram as a function of thermal and quantum fluctuations determined from independent criteria is unique, and shows "melting" from the WM to both the classical and quantum "liquids." An intriguing signature of weakening liquidity with increasing temperature, $T$, is found in the extreme quantum regime. The crossover is associated with production of defects. However, these defects appear to play distinct roles in driving the quantum and thermal "melting." Our study will help comprehending melting in a variety of experimental traps - from quantum dots to complex plasma.Comment: 14 pages, 9 figure

Incipient Wigner Localization in Circular Quantum Dots

We study the development of electron-electron correlations in circular quantum dots as the density is decreased. We consider a wide range of both electron number, N<=20, and electron gas parameter, r_s<18, using the diffusion quantum Monte Carlo technique. Features associated with correlation appear to develop very differently in quantum dots than in bulk. The main reason is that translational symmetry is necessarily broken in a dot, leading to density modulation and inhomogeneity. Electron-electron interactions act to enhance this modulation ultimately leading to localization. This process appears to be completely smooth and occurs over a wide range of density. Thus there is a broad regime of ``incipient'' Wigner crystallization in these quantum dots. Our specific conclusions are: (i) The density develops sharp rings while the pair density shows both radial and angular inhomogeneity. (ii) The spin of the ground state is consistent with Hund's (first) rule throughout our entire range of r_s for all 4<N<20. (iii) The addition energy curve first becomes smoother as interactions strengthen -- the mesoscopic fluctuations are damped by correlation -- and then starts to show features characteristic of the classical addition energy. (iv) Localization effects are stronger for a smaller number of electrons. (v) Finally, the gap to certain spin excitations becomes small at the strong interaction (large r_s) side of our regime.Comment: 14 pages, 12 figure

Poverty and Aspirations Failure

We develop a theoretical framework to study the psychology of poverty and 'aspirations failure'. In our framework, the rich and the poor share the same preferences - and also a behavioral bias in setting aspirations. Greater downside risks imposed by poverty exacerbates the effects of this behavioral bias: the poor are more susceptible to both an aspirations failure and pessimism about the likelihood of achieving success. Poverty limits the set of people whose life experiences the poor consider relevant for forming their own beliefs and aspirations. Mitigating behavioral poverty traps require policies which go beyond reducing material deprivation.Reference-dependent Preferences;Aspirations;Persistent Poverty;Locus of control;Simillarity and Belief Formation

Interaction-Induced Strong Localization in Quantum Dots

We argue that Coulomb blockade phenomena are a useful probe of the cross-over to strong correlation in quantum dots. Through calculations at low density using variational and diffusion quantum Monte Carlo (up to r_s ~ 55), we find that the addition energy shows a clear progression from features associated with shell structure to those caused by commensurability of a Wigner crystal. This cross-over (which occurs near r_s ~ 20 for spin-polarized electrons) is, then, a signature of interaction-driven localization. As the addition energy is directly measurable in Coulomb blockade conductance experiments, this provides a direct probe of localization in the low density electron gas.Comment: 4 pages, published version, revised discussio