Analyzing the reasons of financial crises in "The Black Swans," N.N. Taleb concludes that modern economic models badly describe reality for they are not able to forecast such crises in advance.We tried to present processes on stock exchange as two random processes one of which happens rather...

The behavior on a stock exchange can be represented as a reaction to the flow of events of two types entering the financial market – “regular” events and “crises”. Broker's wealth depends on how successfully she identifies which event – crisis or not – occurs at the moment. It was...

We study a problem of individual manipulation in an impartial culture (IC) framework using computer modeling. We estimate the degree of manipulability of ten positional voting rules in the case of multiple choice for 3 and 4 alternatives.

The issue of systemic importance has received particular attention since the recent financial crisis when it came to the fore that an individual financial institution can disturb the whole financial system. Interconnectedness is considered as one of the key drivers of systemic importance....

Irina Abankina, Ph.D. in Economics, Professor, Director of the Education Development Institute, National Research University - Higher School of Economics, Moscow, Russian Federation. Email: abankinaI@hse.ru Fuad Aleskerov, Eng.D., Professor, Head of Mathematics Department, Faculty of Economics,...

The problem of manipulation in voting is studied in the case of multi-valued choice. Well-known and new schemes of preferences extension enabling one to compare all possible social choices under an arbitrary number of alternatives are presented. The known indices of degree and efficiency of...

The Basel Committee introduced countercyclical capital buffers in order to mitigate the effects of bank capital procyclicality, which is to say the decrease in the capital adequacy of banks in economic downturns. The ratio of loans to GDP was taken as the proxy for the economic cycle signaling...

A set of new power indices is introduced extending Banzhaf power index and allowing to take into account agents’ preferences to coalesce. An axiomatic characterization of intensity functions representing a desire of agents to coalesce is given. A set of axioms for new power indices is...

A set of new power indices is introduced extending Banzhaf power index and allowing to take into account agents’ preferences to coalesce. An axiomatic characterization of intensity functions representing a desire of agents to coalesce is given. A set of axioms for new power indices is...