Many disasters are foreshadowed by insufficient preventative care. In this paper, we argue that there is a true problem of prevention, in that insufficient care is often the result of rational calculations on the part of agents. We identify three factors that lead to dubious efforts in care....

Physical resources such as land, labour and livestock, and nonphysical resources such as indigenous knowledge and institutions of producers in the grain surplus and deficit regions of the Central Highlands of Ethiopia are examined under situation of environmental and policy risks. Frequency...

The general question of how environmental dynamics affect the behavioral interaction in an evolutionary economy is considered. To this end, a basic model of a dynamic multi-sector economy is developed where the evolution of investment strategies depends on the diversity of investment strategies,...

Agricultural information and indigenous knowledge were examined among peasants of the central Ethiopian highlands. Measures of central tendency, logical explanation, descriptive analysis, problem solving tests, scoring and logit analysis were performed. The findings indicate that information...

The paper elaborates some analytical opportunities for econophysics in the implementation of Basel II documents for banking. We see this chances by reviewing some methodologies proposed by the econophysicists in the three important aspects of risk management: the market risk, credit risk, and...

The European integration process becomes more and more a reality for the Central and Eastern European countries. Thus, on the 1st of May 2004, ten other States became members of the EU, eight of them being from the Central and Eastern Europe. At 1 January 2007, now we know certainly, the...

Knowledge loss is not a remote phenomenon, unique to one knowledge system. Rather we argue that the loss of knowledge is an issue for other knowledge systems as well. Knowledge loss is certainly a concern for anthropologists working on indigenous knowledge, fearful of ‘losing’ indigenous...

We propose in this paper a model for the description of electricity spot prices, which we use to describe the dynamics of forward curves. The spot price model is based on a long-term/short-term decomposition, where the price is thought of as made up of two factors: A long-term equilibrium level...

We study the following game: each agent i chooses a lottery over nonnegative numbers whose expectation is equal to his budget b_i. The agent with the highest realized outcome wins and agents only care about winning). This game is motivated by various real-world settings where agents each choose...

Institutions are usually defined as rules of the game. But if rules are dead letters without being enforced, then what is the role of destructive power in the genesis of institutions? This is the first question which will be addressed in the present paper. While the importance of incremental or...