16 citations · 28 across the 8 of their papers we have counts for
9 papers
The Two Growth Rates of the Economy
Alexander Adamou, Yonatan Berman, Ole Peters
Economic growth is measured as the rate of relative change in gross domestic product (GDP) per capita. Yet, when incomes follow random multiplicative growth, the ensemble-average (…
What are we weighting for? A mechanistic model for probability weighting
Ole Peters, Alexander Adamou, Mark Kirstein +1
Behavioural economics provides labels for patterns in human economic behaviour. Probability weighting is one such label. It expresses a mismatch between probabilities used in a for…
Microfoundations of Discounting
Alexander T. I. Adamou, Yonatan Berman, Diomides P. Mavroyiannis +1
An important question in economics is how people choose between different payments in the future. The classical normative model predicts that a decision maker discounts a later pay…
The sum of log-normal variates in geometric Brownian motion
Ole Peters, Alexander Adamou
Geometric Brownian motion (GBM) is a key model for representing self-reproducing entities. Self-reproduction may be considered the definition of life [5], and the dynamics it induc…
The time interpretation of expected utility theory
Ole Peters, Alexander Adamou
Economic models often maximise expectation values of wealth or utility. In non-ergodic settings, these can differ from time-averages, so that maximising expected outcomes need not…
Far from equilibrium: Wealth reallocation in the United States
Yonatan Berman, Ole Peters, Alexander Adamou
Studies of wealth inequality often assume that an observed wealth distribution reflects a system in equilibrium. This constraint is rarely tested empirically. We introduce a simple…
Insurance makes wealth grow faster
Ole Peters, Alexander Adamou
Voluntary insurance contracts constitute a puzzle because they increase the expectation value of one party's wealth, whereas both parties must sign for such contracts to exist. Cla…
An evolutionary advantage of cooperation
Ole Peters, Alexander Adamou
Cooperation is a persistent behavioral pattern of entities pooling and sharing resources. Its ubiquity in nature poses a conundrum. Whenever two entities cooperate, one must willin…
Leverage efficiency
Ole Peters, Alexander Adamou
Peters (2011a) defined an optimal leverage which maximizes the time-average growth rate of an investment held at constant leverage. It was hypothesized that this optimal leverage i…