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Assurance Contract
An assurance contract, also known as a provision point mechanism, or crowdaction, is a game-theoretic mechanism and a financial technology that facilitates the voluntary creation of public goods and club goods in the face of collective action problems such as the free rider problem. The free rider problem is that there may be actions that would benefit a large group of people, but once the action is taken, there is no way to exclude those who did not pay for the action from the benefits. This leads to a game theoretic problem: all members of a group might be better off if an action were taken, and the members of the group contributed to the cost of the action, but many members of the group may make the perfectly rational decision to let others pay for it, then reap the benefits for free, possibly with the result that no action is taken. The result of this rational game play is lower utility for everyone. Operation In a binding way, members of a group pledge to contribute to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mechanism Design
Mechanism design is a field in economics and game theory that takes an objectives-first approach to designing economic mechanisms or incentives, toward desired objectives, in strategic settings, where players act rationally. Because it starts at the end of the game, then goes backwards, it is also called reverse game theory. It has broad applications, from economics and politics in such fields as market design, auction theory and social choice theory to networked-systems (internet interdomain routing, sponsored search auctions). Mechanism design studies solution concepts for a class of private-information games. Leonid Hurwicz explains that 'in a design problem, the goal function is the main "given", while the mechanism is the unknown. Therefore, the design problem is the "inverse" of traditional economic theory, which is typically devoted to the analysis of the performance of a given mechanism.' So, two distinguishing features of these games are: * that a game "designer" choos ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alex Tabarrok
Alexander Taghi Tabarrok (born November 11, 1966) is a Canadian-American economist. With Tyler Cowen, he co-authors the economics blog ''Marginal Revolution''. Tabarrok and Cowen have also ventured into online education with ''Marginal Revolution University.'' Tabarrok is a professor at Virginia's George Mason University and Bartley J. Madden Chair in Economics at the school's Mercatus Center. In addition, Tabarrok is director of research for the Oakland, California based think tank the Independent Institute. He is the son of the late mechanical engineering professor Behrooz (Bez) Tabarrok. His doctoral studies were done at George Mason University where he received his Ph.D. in 1994. He has done work on dominant assurance contracts, law and economics, and health economics. He has two sons named Connor and Maxwell Tabarrok. In 2012, journalist David Brooks called Tabarrok one of the most influential bloggers on the political right, writing that he is among those who "start fr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Threshold Pledge System
The threshold pledge or fund and release system is a way of making a fundraising pledge as a group of individuals, often involving charitable goals or financing the provision of a public good. An amount of money is set as the goal or ''threshold'' to reach for the specified purpose and interested individuals will pitch in, but the money at first either remains with the pledgers or is held in escrow. When the threshold is reached, the pledges are called in (or transferred from the escrow fund) and a contract is formed so that the collective good is supplied; a variant is that the money is collected when the good is actually delivered. If the threshold is not reached by a certain date (or perhaps if no contract is ever signed, etc.), the pledges are either never collected or, if held in escrow, are simply returned to the pledgers. In economics, this type of model is known as an assurance contract. This system is most often applied to creative works, both for financing new producti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Preorder Economy
A preorder economy is a type of proposed future economy where the exact demand for goods is known ahead of time, before any material production takes place. It has been discussed within the framework of ecological economics. Just-in-time manufacturing Creating a preorder economy has recently been proposed as an economic efficiency solution to the environmental problems facing modern society. These environmental challenges are believed to be caused in part by unsustainable levels of production, consumption and advertising related to the imperfect exchange of information in market economies. Therefore, preorder economy theory advocates using the Internet as the means to coordinate all production with existing consumer desires, so that almost nothing is made which does not have someone ready to buy it. This is the idea of just in time manufacturing taken to its logical end. See also * Assurance contract An assurance contract, also known as a provision point mechanism, or crowdac ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Micropatronage
Peer-to-peer lending, also abbreviated as P2P lending, is the practice of loan, lending money to individuals or businesses through online services that match lenders with borrowers. Peer-to-peer lending companies often offer their services online, and attempt to operate with lower Overhead (business), overhead and provide their services more cheaply than traditional financial institutions. As a result, lenders can earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rates, even after the P2P lending company has taken a fee for providing the match-making Computing platform, platform and credit checking the borrower. There is the risk of the borrower defaulting on the loans taken out from peer-lending websites. Peer-to-peer fundraising encourages supporters of a charity or non-profit organisation to individually raise money. It's a bit subcategory of crowdfunding. Instead of having one main crowdfunding ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kickstarter
Kickstarter is an American public benefit corporation based in Brooklyn, New York, that maintains a global crowdfunding platform focused on creativity. The company's stated mission is to "help bring creative projects to life". As of July 2021, Kickstarter has received $6.6 billion in pledges from 21 million backers to fund 222,000 projects, such as films, music, stage shows, comics, journalism, video games, board games, technology, publishing, and food-related projects. People who back Kickstarter projects are offered tangible rewards or experiences in exchange for their pledges. This model traces its roots to subscription model of arts patronage, where artists would go directly to their audiences to fund their work. History Kickstarter launched on April 28, 2009, by Perry Chen, Yancey Strickler, and Charles Adler. ''The New York Times'' called Kickstarter "the people's NEA". ''Time'' named it one of the "Best Inventions of 2010" and "Best Websites of 2011". Kickstarter repo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Free State Project
The Free State Project (FSP) is an American political migration movement founded in 2001 to recruit at least 20,000 libertarians to move to a single low-population state (New Hampshire was selected in 2003) in order to make the state a stronghold for libertarian ideas. The ''New Hampshire Union Leader'' reports the Free State Project is not a political party, but a nonprofit organization. Participants signed a statement of intent declaring that they intend to move to New Hampshire within five years of the drive reaching 20,000 participants. This statement of intent was intended to function as a form of assurance contract. , 20,000 people have signed this statement of intent—completing the original goal—and 1,909 people are listed as "early movers" to New Hampshire on the FSP website, saying they had made their move prior to the 20,000-participant trigger. In the 2017–2018 term of the 400-member New Hampshire House of Representatives, 17 seats were held by Free Staters. Th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Crowd Funding
Crowdfunding is the practice of funding a project or venture by raising money from a large number of people, typically via the internet. Crowdfunding is a form of crowdsourcing and alternative finance. In 2015, over was raised worldwide by crowdfunding. Although similar concepts can also be executed through mail-order subscriptions, benefit events, and other methods, the term crowdfunding refers to internet-mediated registries. This modern crowdfunding model is generally based on three types of actors – the project initiator who proposes the idea or project to be funded, individuals or groups who support the idea, and a moderating organization (the "platform") that brings the parties together to launch the idea. Crowdfunding has been used to fund a wide range of for-profit, entrepreneurial ventures such as artistic and creative projects, medical expenses, travel, and community-oriented social entrepreneurship projects. Although crowdfunding has been suggested to be highly ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contingency Market
Contingency markets are markets where contracts are made to exchange funds contingent upon an event or combination of events or contingencies thereof. Difference from prediction markets Prediction markets are a subset of contingency markets and specialise in independent future events and are often exploited for the predictive side effect they produce. Complex contingencies only tend to occur in the gambling industry's implementations of prediction markets. Unlike prediction markets, contingency markets also support dependent future events. These are a priori directly influenced or controlled by those interested in a particular outcome of an event. See also *Insurance * Threshold pledge * Assurance contracts *Betting exchange A betting exchange is a marketplace for customers to bet on the outcome of discrete events. Betting exchanges offer the same opportunities to bet as a bookmaker with a few differences. Gamblers can buy (also known as "back") and sell (also known ... * Pre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dominance (game Theory)
In game theory, strategic dominance (commonly called simply dominance) occurs when one strategy is better than another strategy for one player, no matter how that player's opponents may play. Many simple games can be solved using dominance. The opposite, intransitivity, occurs in games where one strategy may be better or worse than another strategy for one player, depending on how the player's opponents may play. Terminology When a player tries to choose the "best" strategy among a multitude of options, that player may compare two strategies A and B to see which one is better. The result of the comparison is one of: * B is equivalent to A: choosing B always gives the same outcome as choosing A, no matter what the other players do. * B strictly dominates A: choosing B always gives a better outcome than choosing A, no matter what the other players do. * B weakly dominates A: choosing B always gives at least as good an outcome as choosing A, no matter what the other players do, and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Anarcho-capitalism
Anarcho-capitalism (or, colloquially, ancap) is an anti-statist, libertarian, and anti-political philosophy and economic theory that seeks to abolish centralized states in favor of stateless societies with systems of private property enforced by private agencies, the non-aggression principle, free markets and the right-libertarian interpretation of self-ownership, which extends the concept to include control of private property as part of the self. In the absence of statute, anarcho-capitalists hold that society tends to contractually self-regulate and civilize through participation in the free market, which they describe as a voluntary society involving the voluntary exchange of services and goods. In a theoretical anarcho-capitalist society, the system of private property would still exist and be enforced by private defense agencies and/or insurance companies selected by customers which would operate competitively in a market and fulfill the roles of courts and the police. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Engineering
Financial engineering is a multidisciplinary field involving financial theory, methods of engineering, tools of mathematics and the practice of programming. It has also been defined as the application of technical methods, especially from mathematical finance and computational finance, in the practice of finance.Tanya S. Beder and Cara M. Marshall, ''Financial Engineering: The Evolution of a Profession'', Wiley (June 7, 2011) 978-0470455814 Financial engineering plays a key role in the customer-driven derivatives business — delivering bespoke OTC-contracts and "exotics", and implementing various structured products — which encompasses quantitative modelling, quantitative programming and risk managing financial products in compliance with the regulations and Basel capital/liquidity requirements. An older use of the term "financial engineering" that is less common today is aggressive restructuring of corporate balance sheets. Mathematical finance is the application of m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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