How Much Inequality Is Fair?

Mathematical Principles of a Moral, Optimal, and Stable Capitalist Society

Author: Venkat Venkatasubramanian

Publisher: Columbia University Press

ISBN: 0231543220

Category: Business & Economics

Page: 288

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Many in the United States feel that the nation’s current level of economic inequality is unfair and that capitalism is not working for 90% of the population. Yet some inequality is inevitable. The question is: What level of inequality is fair? Mainstream economics has offered little guidance on fairness and the ideal distribution of income. Political philosophy, meanwhile, has much to say about fairness yet relies on qualitative theories that cannot be verified by empirical data. To address inequality, we need to know what the goal is—and for this, we need a quantitative, testable theory of fairness for free-market capitalism. How Much Inequality Is Fair? synthesizes concepts from economics, political philosophy, game theory, information theory, statistical mechanics, and systems engineering into a mathematical framework for a fair free-market society. The key to this framework is the insight that maximizing fairness means maximizing entropy, which makes it possible to determine the fairest possible level of pay inequality. The framework therefore provides a moral justification for capitalism in mathematical terms. Venkat Venkatasubramanian also compares his theory’s predictions to actual inequality data from various countries—showing, for instance, that Scandinavia has near-ideal fairness, while the United States is markedly unfair—and discusses the theory’s implications for tax policy, social programs, and executive compensation.
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Network Theory and Agent-Based Modeling in Economics and Finance

Author: Anindya S. Chakrabarti,Lukáš Pichl,Taisei Kaizoji

Publisher: Springer Nature

ISBN: 9811383197

Category: Business & Economics

Page: 458

View: 4934

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This book presents the latest findings on network theory and agent-based modeling of economic and financial phenomena. In this context, the economy is depicted as a complex system consisting of heterogeneous agents that interact through evolving networks; the aggregate behavior of the economy arises out of billions of small-scale interactions that take place via countless economic agents. The book focuses on analytical modeling, and on the econometric and statistical analysis of the properties emerging from microscopic interactions. In particular, it highlights the latest empirical and theoretical advances, helping readers understand economic and financial networks, as well as new work on modeling behavior using rich, agent-based frameworks. Innovatively, the book combines observational and theoretical insights in the form of networks and agent-based models, both of which have proved to be extremely valuable in understanding non-linear and evolving complex systems. Given its scope, the book will capture the interest of graduate students and researchers from various disciplines (e.g. economics, computer science, physics, and applied mathematics) whose work involves the domain of complexity theory.
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Complex Systems, Multi-Sided Incentives and Risk Perception in Companies

Author: Michael I.C. Nwogugu

Publisher: Springer Nature

ISBN: 1137447044

Category: Business & Economics

Page: 849

View: 8872

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Most research about financial stability and sustainable growth focuses on the financial sector and macroeconomics and neglects the real sector, microeconomics and psychology issues. Real-sector and financial-sectors linkages are increasing and are a foundation of economic/social/environmental/urban sustainability, given financial crises, noise, internet, “transition economics”, disintermediation, demographics and inequality around the world. Within complex systems theory framework, this book analyses some multi-sided mechanisms and risk-perception that can have symbiotic relationships with financial stability, systemic risk and/or sustainable growth. Within the context of Regret Minimization, MN-Transferable Utility and WTAL, new theories-of-the-firm are developed that consider sustainable growth, price stability, globalization, financial stability and birth-to-death evolutions of firms. This book introduces new behaviour theories pertaining to real estate and intangibles, which can affect the evolutions of risk-taking and risk perception within organizations and investment entities. The chapters address elements of the dilemma of often divergent risk perceptions of, and risk-taking by corporate executives, regulators and investment managers.
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The Best Writing on Mathematics 2018

Author: Mircea Pitici

Publisher: Princeton University Press

ISBN: 0691188726

Category: Mathematics

Page: 272

View: 8491

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The year’s finest mathematical writing from around the world This annual anthology brings together the year’s finest mathematics writing from around the world. Featuring promising new voices alongside some of the foremost names in the field, The Best Writing on Mathematics 2018 makes available to a wide audience many pieces not easily found anywhere else—and you don’t need to be a mathematician to enjoy them. These essays delve into the history, philosophy, teaching, and everyday aspects of math, offering surprising insights into its nature, meaning, and practice—and taking readers behind the scenes of today’s hottest mathematical debates. James Grime shows how to build subtly mischievous dice for playing slightly unfair games and Michael Barany traces how our appreciation of the societal importance of mathematics has developed since World War II. In other essays, Francis Su extolls the inherent values of learning, doing, and sharing mathematics, and Margaret Wertheim takes us on a mathematical exploration of the mind and the world—with glimpses at science, philosophy, music, art, and even crocheting. And there’s much, much more. In addition to presenting the year’s most memorable math writing, this must-have anthology includes an introduction by the editor and a bibliography of other notable pieces on mathematics. This is a must-read for anyone interested in where math has taken us—and where it is headed.
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