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Dominant Assurance Contract
An assurance contract, also known as a provision point mechanism, or crowdaction, is a Mechanism design, game-theoretic mechanism and a Financial engineering, financial technology that facilitates the voluntary creation of Public good (economics), public goods and club goods in the face of Collective_action#Collective_action_problem, 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 theory, 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 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mechanism Design
Mechanism design (sometimes implementation theory or institution design) is a branch of economics and game theory. It studies how to construct rules—called Game form, mechanisms or institutions—that produce good outcomes according to Social welfare function, some predefined metric, even when the designer does not know the players' true preferences or what information they have. Mechanism design thus focuses on the study of solution concepts for a class of private-information games. Mechanism design has broad applications, including traditional domains of economics such as market design, but also political science (through voting theory). It is a foundational component in the operation of the internet, being used in networked systems (such as inter-domain routing), e-commerce, and Sponsored search auction, advertisement auctions by Facebook and Google. Because it starts with the end of the game (a particular result), then works backwards to find a game that implements it, it ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alex Tabarrok
Alexander Taghi Tabarrok (born November 11, 1966) is a Canadian- American economist. Tabarrok is a professor at Virginia's George Mason University and Bartley J. Madden Chair in Economics at the school's Mercatus Center. With Tyler Cowen, he co-authors the economics blog ''Marginal Revolution''. Tabarrok and Cowen have also ventured into online education with ''Marginal Revolution University''. From 1999 until 2013 he was director of research for the Independent Institute, an Oakland, California based think tank. He completed his undergraduate studies at the University of Victoria in Canada and received his Ph.D. from George Mason University in 1994. He has done work on dominant assurance contracts, law and economics, and health economics. 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 from broadly libertarian premises but do not apply them in a doctrinaire way." Ref ... [...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 produ ... [...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 The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ... as the means to coordinate all production with existing consumer desires, so that ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Micropatronage
Peer-to-peer lending, also abbreviated as P2P lending, is the practice of 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 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 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 subcategory of crowdfunding. Instead of having one main crowdfunding page where everybody donates, people can have mul ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kickstarter
Kickstarter, PBC is an American Benefit corporation, public benefit corporation based in Brooklyn, New York City, that maintains a global crowdfunding platform focused on creativity. The company's stated mission is to "help bring creative projects to life". As of April 2025, Kickstarter has received US$8.71 billion in pledges from 24.1 million backers to fund 277,302 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, in which 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 National Endowment for the Arts, NEA". ''Time (magazine), Time'' named ... [...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 to make the state a stronghold for libertarian ideas. New Hampshire was selected in 2003 for this purpose. The ''New Hampshire Union Leader'' reports that the Free State Project is not a political party but a nonprofit organization. Participants in the FSP signed a statement of intent declaring that they intended to move to New Hampshire within five years of the drive reaching 20,000 participants. The statement of intent was intended to function as a form of assurance contract. , 20,000 people had signed this statement of intent, completing the original goal, and 1,909 people were 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 he ... [...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, to fund projects "without standard financial intermediaries". Mollick, E. (2014). ''The dynamics of crowdfunding: An exploratory study.'' Journal of Business Venturing. Vol. 29, pp. 1–16. 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. The term crowdfunding was coined in 2006 by entrepreneur and technologist, Mich ... [...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 *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 ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dominance (game Theory)
In game theory, a strategy ''A'' dominates another strategy ''B'' if ''A'' will always produce a better result than ''B'', regardless of how any other player plays. Some very simple games (called straightforward games) can be solved using dominance. Terminology A player can compare two strategies, A and B, to determine which one is better. The result of the comparison is one of: * 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 there is at least one set of opponents' actions for which B gives a better outcome than A. (Notice that if B strictly dominates A, then B weakly dominates A. Therefore, we can say "B dominates A" to mean "B weakly dominates A".) * B is weakly dominated by A: there is at least one set of opponents' actions for which B gives a worse outcome than A, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Anarcho-capitalism
Anarcho-capitalism (colloquially: ancap or an-cap) is a political philosophy and economic theory that advocates for the abolition of centralized states in favor of stateless societies, where systems of private property are enforced by private agencies. Anarcho-capitalists argue that society can self-regulate and civilize through the voluntary exchange of goods and services. This would ideally result in a voluntary society based on concepts such as the non-aggression principle, free markets and self-ownership. In the absence of statute, private defence agencies and/or insurance companies would operate competitively in a market and fulfill the roles of courts and the police, similar to a state apparatus. Some anarcho-capitalist philosophies understand control of private property as part of the self, and some permit voluntary slavery. The vast majority of anarcho‑capitalists deny this, and critics of capitalism argue that this minority opinion is not unique to anarcho- ... [...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 a bank's 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 applicat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
