Inefficiencies in bargaining - departing from Akerlof and Myerson-Satterthwaite

We consider bargaining problems in which parties have access to outside options. The size of the pie is commonly known and each party privately knows the realization of her outside option. Parties are assumed to have a veto right, which allows them to obtain at least their outside option payoff in any event. Besides, agents can receive no subsidy ex post. We show that inefficiencies are inevitable for virtually all distributions of outside options, as long as the size of the surplus generated by the agreement is uncertain and may be arbitrarily small for all realizations of either party’s outside option. Our inefficiency result holds true whatever the degree of correlation between the distributions of outside options, and even if it is known for sure that an agreement is beneficial. The same insights apply to the bargaining between a buyer and a seller privately informed of their valuations and to public good problems among agents privately informed of their willingness to pay

Statistics of precursors to fingering processes

We present an analysis of the statistical properties of hydrodynamic field fluctuations which reveal the existence of precursors to fingering processes. These precursors are found to exhibit power law distributions, and these power laws are shown to follow from spatial $q$-Gaussian structures which are solutions to the generalized non-linear diffusion equation.Comment: 7 pages incl. 5 figs; tp appear in Europhysics Letter

Linear and non linear response in the aging regime of the 1D trap model

We investigate the behaviour of the response function in the one dimensional trap model using scaling arguments that we confirm by numerical simulations. We study the average position of the random walk at time tw+t given that a small bias h is applied at time tw. Several scaling regimes are found, depending on the relative values of t, tw and h. Comparison with the diffusive motion in the absence of bias allows us to show that the fluctuation dissipation relation is, in this case, valid even in the aging regime.Comment: 5 pages, 3 figures, 3 references adde

Rejuvenation in the Random Energy Model

We show that the Random Energy Model has interesting rejuvenation properties in its frozen phase. Different `susceptibilities' to temperature changes, for the free-energy and for other (`magnetic') observables, can be computed exactly. These susceptibilities diverge at the transition temperature, as (1-T/T_c)^-3 for the free-energy.Comment: 9 pages, 1 eps figur

Multiple scaling regimes in simple aging models

We investigate aging in glassy systems based on a simple model, where a point in configuration space performs thermally activated jumps between the minima of a random energy landscape. The model allows us to show explicitly a subaging behavior and multiple scaling regimes for the correlation function. Both the exponents characterizing the scaling of the different relaxation times with the waiting time and those characterizing the asymptotic decay of the scaling functions are obtained analytically by invoking a `partial equilibrium' concept.Comment: 4 pages, 3 figure

Aging in Models of Non-linear Diffusion

We show that for a family of problems described by non-linear diffusion equations an exact calculation of the two time correlation function gives C(t,t')=f(t-t')g(t'), t>t', exhibiting normal and anomalous diffusions, as well as aging effects, depending on the degree of non-linearity. We discuss also the form in which FDT is violated in this class of systems. Finally we argue that in this type of models aging may be consequence of the non conservation of the "total mass".Comment: 4 pages, 1 figure, to appear in Phys.Rev.

The noise properties of stochastic processes and entropy production

Based on a Fokker-Planck description of external Ornstein-Uhlenbeck noise and cross-correlated noise processes driving a dynamical system we examine the interplay of the properties of noise processes and the dissipative characteristic of the dynamical system in the steady state entropy production and flux. Our analysis is illustrated with appropriate examples.Comment: RevTex, 1 figure, To appear in Phys. Rev.

Resonance phenomena in discrete systems with bichromatic input signal

We undertake a detailed numerical study of the twin phenomena of stochastic and vibrational resonance in a discrete model system in the presence of bichromatic input signal. A two parameter cubic map is used as the model that combines the features of both bistable and threshold settings. Our analysis brings out several interesting results, such as, the existence of a cross over behaviour from vibrational to stochastic resonance and the possibility of using stochastic resonance as a filter for the selective detection/transmission of the component frequencies in a composite signal. The study also reveals a fundamental difference between the bistable and threshold mechanisms with respect to amplification of a multi signal input.Comment: 17 pages, 16 figures, submitted to European Physical Journa

Nonequilibrium stochastic processes: Time dependence of entropy flux and entropy production

Based on the Fokker-Planck and the entropy balance equations we have studied the relaxation of a dissipative dynamical system driven by external Ornstein-Uhlenbeck noise processes in absence and presence of nonequilibrium constraint in terms of the thermodynamically inspired quantities like entropy flux and entropy production. The interplay of nonequilibrium constraint, dissipation and noise reveals some interesting extremal nature in the time dependence of entropy flux and entropy production.Comment: RevTex, 17 pages, 9 figures. To appear in Phys. Rev.