This paper formalizes the idea that more hedging instruments may destabilize markets when traders have heterogeneous expectations and adapt their behavior according to performance-based reinforcement learning. In a simple asset pricing model with heterogeneous beliefs the introduction of...

Purpose – The purpose of this paper is to address the issue of optimal management of ecosystems by developing a dynamic model of strategic behavior by users/communities of an ecosystem such as a lake, which is subject to pollution resulting from the users. More specifically, it builds a model...

We present methods and tools that can be used to study dynamic environmental resource management in a spatial setting, to explore spatially dependent regulation, and to understand pattern formation. In particular, we present the maximum principle and its use in the context of the emerging...

Purpose – The purpose of this paper is to address the issue of optimal management of ecosystems by developing a dynamic model of strategic behavior by users/communities of an ecosystem such as a lake, which is subject to pollution resulting from the users. More specifically, it builds a model...

We study here optimal management of dynamic ecological systemsthat exhibit a destabilizing positive feedback. The prototypeexample is that of a shallow lake in which phosphorous loadingplaced by anthropogenic activities (fertilizers for farmingand gardening) is stored in sediments until a...

This chapter discusses overlapping generation's (OG) models with money and transaction costs. Models are used with an infinite number of goods and agents. The chapter discusses money-in-the-utility function (MIUF) models and the usefulness of OG models for monetary theory. OG model gives the...

We analyze a controlled price formation experiment in the laboratory that shows evidence for bubbles. We calibrate two models that demonstrate with high statistical significance that these laboratory bubbles have a tendency to grow faster than exponential due to positive feedback. We show that...