Showing papers by "Er'el Granot published in 2017"

Ricardo’s Law of Comparative Advantage and the Law of Association: A Subjective Analysis

Abstract: The law of association, which is a generalization of Ricardo's law of comparative advantage, is one of the most fundamental laws in economics, which explains the benefits of international trade in the macroscopic level and the division of labour in the microscopic one. However, the derivation of the law is traditionally based on aggregate production criterions rather than on the producers' subjective preferences. An economic law, which ignores subjective preferences cannot be regarded as a fundamental one. In this chapter, a subjective analysis of the law is presented, to the best of our knowledge, for the first time. It is shown that when subjective considerations are introduced the tendency to trade can be reduced. An algorithm is presented to illustrate the dynamics of the process, in which the information regarding the subjective preferences is transferred via the previous trading prices. Furthermore, the effect of specialization on the production frontiers, which is absent in most economics derivations of the law, is taken under consideration. It is shown that even if both producers are identical a non-trading state is unstable. It is therefore shown that counter to mainstream thinking, comparative advantage is neither necessary nor is it a sufficient condition for trading.

The Tunnelling Current through Oscillating Resonance and the Sisyphus Effect

Abstract: The tunnelling current through an oscillating resonance level is thoroughly investigated exactly numerically and with several approximations—analytically. It is shown that while the oscillations can increase the tunnelling current (and in several cases the increase is exponentially large), their main effect is to reduce it dramatically at certain energies. In fact, the current in the presence of the oscillations cannot increase the maximum current of the adiabatic solution. That is why, while the elevator effect does occur in this system, the Sisyphus effect is the more dominant and prominent one.

Affordable dispersion mitigation method for the next generation RF-over-fiber optical channels

Abstract: Next-generation analog radio frequency over fiber (RFoF) links will require dispersion compensation. Most dispersion compensation methods are based on additional optical elements. Therefore, these solutions may be inadequate for low-cost channels. In this work, we suggest a novel low-cost dispersion compensation solution for RFoF links. The method is based on two properties, which are common in these links: the modulation depth in analog RFoF links is lower than in digital links (and to avoid nonlinearities, it may be deliberately set to a small value), and the data are carried by a high-frequency carrier. It is shown that with these properties, the optical channel behaves approximately as a linear system. The distortion occurs in the linear domain and in the third-harmonic regime. Since the third-harmonic distortions are usually smaller than the back-to-back distortions, they are linear in the power domain. We therefore suggest using a simple low-cost electronic filter to compensate the dispersion distortions. The performance of this technique is presented both analytically and with a numerical simulation. These preliminary results are very encouraging and point to an inexpensive solution for next-generation RFoF links to the home.

Information Loss in Quantum Dynamics

Abstract: The way data is lost from the wavefunction in quantum dynamics is analyzed. The main results are (A) Quantum dynamics is a dispersive process in which any data initially encoded in the wavefunction is gradually lost. The ratio between the distortion’s variance and the mean probability density increases in a simple form. (B) For any given amount of information encoded in the wavefunction, there is a time period, beyond which it is impossible to decode the data. (C) The temporal decline of the maximum information density in the wavefunction has an exact analytical expression. (D) For any given time period there is a specific detector resolution, with which the maximum information can be decoded. (E) For this optimal detector size the amount of information is inversely proportional to the square root of the time elapsed.

The Roll of the Entrepreneur in the Establishment of Economic Equilibria

Abstract: In this chapter, a simple market model is presented to illustrate how random entrepreneurial activity can be responsible for the establishment of economic equilibria without the assumption of perfect knowledge. In this model it is assumed that the entrepreneurs (both traders and producers) have no information regarding the other entrepreneurs’ preferences, wealth, or production skills. The only information they have is the past transaction prices, and yet this information is sufficient for the market to reach equilibrium price. Equilibrium is not a stationary process on the microscopic level. It is a process, which consists of interactions between entrepreneurs, who act randomly without insight. Consequently, the market price continuously oscillates randomly around the equilibrium values. The higher the risk the producers are willing to take, the more stable is the equilibrium. When entrepreneurial actions are depressed, the market may drift from its optimal point. This model also investigates the more realistic scenario, in which, due to specialization, the production boundary frontiers are convex (instead of linear). It is shown that in this case, the drifts are suppressed and the optimal equilibrium is more stable. Moreover, the amount of risk aversion has a clear effect on the production growth of the economy. The lower the risk aversion is, the higher is the growth rate of the economy.