Introduction: The development of advanced sewage technologies empowers the industry to produce high-quality recycled water, which greatly influences human’s life and health. Thus, this study investigates the mechanism of individuals’ adoption of recycled water from the technology adoption perspective. -/- Methods: Employing the mixed method of structural equation modeling and artificial neural network analysis, we examined a research model developed from the extended Unified Theory of Acceptance and Use of Technology (UTAUT2) framework. To examine the research model, this study employs (...) a leading web-survey company (Sojump) to collect 308 valid samples from the residents in mainland China. -/- Results: The structural equation modeling results verified the associations between the six predictors (performance expectancy, effort expectancy, social influence, facilitating conditions, environmental motivation, and price value), individuals’ cognitive and emotional attitudes, and acceptance intention. The artificial neural network analysis validates and complements the structural equation modeling results by unveiling the importance rank of the significant determinants of the acceptance decisions. -/- Discussion: The study provides theoretical implications for recycled water research and useful insights for practitioners and policymakers to reduce the environmental hazards of water scarcity. (shrink)

We show that the physical meaning of the wave function can be derived based on the established parts of quantum mechanics. It turns out that the wave function represents the state of random discontinuous motion of particles, and its modulus square determines the probability density of the particles appearing in certain positions in space.

According to doxastic pragmatism, certain perceived practical factors, such as high stakes and urgency, have systematic effects on normal subjects’ outright beliefs. Upholders of doxastic pragmatism have so far endorsed a particular version of this view, which we may call threshold pragmatism. This view holds that the sensitivity of belief to the relevant practical factors is due to a corresponding sensitivity of the threshold on the degree of credence necessary for outright belief. According to an alternative but yet unrecognised version (...) of doxastic pragmatism, practical factors affect credence rather than the threshold on credence. Let’s call this alternative view credal pragmatism. In this paper, I argue that credal pragmatism is more plausible than threshold pragmatism. I show that the former view better accommodates a cluster of intuitive and empirical data. I conclude by considering the issue of whether our doxastic attitudes’ sensitivity to practical factors can be considered rational, and if yes, in what sense. (shrink)

The meaning of the wave function and its evolution are investigated. First, we argue that the wave function in quantum mechanics is a description of random discontinuous motion of particles, and the modulus square of the wave function gives the probability density of the particles being in certain locations in space. Next, we show that the linear non-relativistic evolution of the wave function of an isolated system obeys the free Schrödinger equation due to the requirements of spacetime translation invariance and (...) relativistic invariance. Thirdly, we argue that the random discontinuous motion of particles may lead to a stochastic, nonlinear collapse evolution of the wave function. A discrete model of energy-conserved wavefunction collapse is proposed and shown consistent with existing experiments and our macroscopic experience. Besides, we also give a critical analysis of the de Broglie-Bohm theory, the many-worlds interpretation and other dynamical collapse theories, and briefly discuss the issues of unifying quantum mechanics and relativity. (shrink)

In this entry, we provide an overview of some of the methodological debates surrounding contextualism and consider whether they are, in effect, based on an underlying methodological dispute. We consider three modes of motivation of epistemic contextualism including i) the method of cases, ii) the appeal to linguistic analogies and iii) the appeal to conceptual analogies and functional roles. We also consider the methodological debates about contextualism arising from experimental philosophy. We conclude that i) there is no distinctive methodological doctrine (...) or set of methodological doctrines that is centrally invoked by all epistemic contextualists and ii) the substantive dispute about the truth of contextualism very frequently, although not invariably, reflects an underlying methodological dispute. (shrink)

It has been argued recently that knowledge is the norm of practical reasoning. This norm can be formulated as a bi-conditional: it is appropriate to treat p as a reason for acting if and only if you know that p. Other proposals replace knowledge with warranted or justified belief. This paper gives counter-examples of both directions of any such bi-conditional. To the left-to-right direction: scientists can appropriately treat as reasons for action propositions of a theory they believe to be false (...) but good approximations to the truth for present purposes. Cases based on a variant of Pascal’s Wager and actions performed by a skeptic also illustrate the point. To the right-to-left direction: in certain circumstances, it can be unreasonable for a scientist to reason from propositions of a theory she knows to be true. (shrink)

We investigate the meaning of the wave function by analyzing the mass and charge density distributions of a quantum system. According to protective measurement, a charged quantum system has effective mass and charge density distributing in space, proportional to the square of the absolute value of its wave function. In a realistic interpretation, the wave function of a quantum system can be taken as a description of either a physical field or the ergodic motion of a particle. The essential difference (...) between a field and the ergodic motion of a particle lies in the property of simultaneity; a field exists throughout space simultaneously, whereas the ergodic motion of a particle exists throughout space in a time-divided way. If the wave function is a physical field, then the mass and charge density will be distributed in space simultaneously for a charged quantum system, and thus there will exist gravitational and electrostatic self-interactions of its wave function. This not only violates the superposition principle of quantum mechanics but also contradicts experimental observations. Thus the wave function cannot be a description of a physical field but a description of the ergodic motion of a particle. For the later there is only a localized particle with mass and charge at every instant, and thus there will not exist any self-interaction for the wave function. Which kind of ergodic motion of particles then? It is argued that the classical ergodic models, which assume continuous motion of particles, cannot be consistent with quantum mechanics. Based on the negative result, we suggest that the wave function is a description of the quantum motion of particles, which is random and discontinuous in nature. On this interpretation, the square of the absolute value of the wave function not only gives the probability of the particle being found in certain locations, but also gives the probability of the particle being there. We show that this new interpretation of the wave function provides a natural realistic alternative to the orthodox interpretation, and its implications for other realistic interpretations of quantum mechanics are also briefly discussed. (shrink)

According to the laws of physics, the state of a physical system can only be measured by another system (usually a particular measuring device) via a physical interaction. However, when our brain is in a conscious mental state, it can in principle output the information about its physical state based on the psycho-physical correspondance between the mental state and the physical state. It is argued that this suggests that the conscious mind violates physical laws and it is not physical as (...) physicalism claims. (shrink)

According to evidentialist views, credence in a proposition p should be proportional to the degree of evidential support that one has in favor of p. However, empirical evidence suggests that our credences are systematically sensitive to practical factors. In this article, I provide a cost–benefit analysis of credences' practical sensitivity. The upshot of this analysis is that credences sensitive to practical factors fare better than practically insensitive ones along several dimensions. All things considered, our credences should be sensitive to practical (...) factors. (shrink)

One challenge for moderate invariantists is to explain why we tend to deny knowledge to subjects in high stakes when the target propositions seem to be inappropriate premises for practical reasoning. According to an account suggested by Williamson, our intuitive judgments are erroneous due to an alleged failure to acknowledge the distinction between first-order and higher-order knowledge: the high-stakes subject lacks the latter but possesses the former. In this paper, I provide three objections to Williamson’s account: i) his account delivers (...) counterintuitive verdicts about what it is appropriate for a high-stakes subject to do; ii) the high-stakes subject doesn’t need iterated knowledge in order to be regarded as appropriately relying on the relevant proposition in practical reasoning; iii) Williamson’s account doesn’t provide a good explanation of why the high-stakes subject would be blameworthy if she were relying on the relevant proposition in her practical reasoning. (shrink)

Ratio, Volume 34, Issue 4, Page 303-311, December 2021.

Self-deception is typically considered epistemically irrational, for it involves holding certain doxastic attitudes against strong counter-evidence. Pragmatic encroachment about epistemic rationality says that whether it is epistemically rational to believe, withhold belief or disbelieve something can depend on perceived practical factors of one’s situation. In this paper I argue that some cases of self-deception satisfy what pragmatic encroachment considers sufficient conditions for epistemic rationality. As a result, we face the following dilemma: either we revise the received view about self-deception or (...) we deny pragmatic encroachment on epistemic rationality. I suggest that the dilemma can be solved if we pay close attention to the distinction between ideal and bounded rationality. I argue that the problematic cases fail to meet standards of ideal rationality but exemplify bounded rationality. The solution preserves pragmatic encroachment on bounded rationality, but denies it on ideal rationality. (shrink)

We give a new argument supporting a gravitational role in quantum collapse. It is demonstrated that the discreteness of space-time, which results from the proper combination of quantum theory and general relativity, may inevitably result in the dynamical collapse of thewave function. Moreover, the minimum size of discrete space-time yields a plausible collapse criterion consistent with experiments. By assuming that the source to collapse the wave function is the inherent random motion of particles described by the wave function, we further (...) propose a concrete model of wavefunction collapse in the discrete space-time. It is shown that the model is consistent with the existing experiments and macroscopic experiences. (shrink)

In quantum mechanics, the wave function of a N-body system is a mathematical function defined in a 3N-dimensional configuration space. We argue that wave function realism implies particle ontology when assuming: (1) the wave function of a N-body system describes N physical entities; (2) each triple of the 3N coordinates of a point in configuration space that relates to one physical entity represents a point in ordinary three-dimensional space. Moreover, the motion of particles is random and discontinuous.

Based on an analysis of protective measurements, we show that the quantum state represents the physical state of a single quantum system. This result is more definite than the PBR theorem [Pusey, Barrett, and Rudolph, Nature Phys. 8, 475 (2012)].

According to pragmatic encroachment, whether an epistemic attitude towards p has some positive epistemic status (e.g., whether a belief is epistemically rational or justified, or it amounts to knowledge) partially depends on practical factors such as the costs of being wrong or the practical goals of the agent. Pragmatic encroachment comes in many varieties. This survey article provides an overview of different kinds of pragmatic encroachment. It focuses on three dimensions under which kinds of pragmatic encroachment differ: the type of (...) epistemic status affected by practical factors, the type of practical factors affecting the epistemic status, and the type of normative considerations encroaching on the epistemic status. (shrink)

According to an increasingly popular view in epistemology and philosophy of mind, beliefs are sensitive to contextual factors such as practical factors and salient error possibilities. A prominent version of this view, called credal sensitivism, holds that the context-sensitivity of belief is due to the context-sensitivity of degrees of belief or credence. Credal sensitivism comes in two variants: while credence-one sensitivism (COS) holds that maximal confidence (credence one) is necessary for belief, threshold credal sensitivism (TCS) holds that belief consists in (...) having credence above some threshold, where this threshold doesn’t require maximal confidence. In this paper, I argue that COS has difficulties in accounting for three important features about belief: i) the compatibility between believing p and assigning non-zero credence to certain error possibilities that one takes to entail not-p, ii) the fact that outright beliefs can occur in different strengths, and iii) beliefs held by unconscious subjects. I also argue that TCS can easily avoid these problems. Finally, I consider an alleged advantage of COS over TCS in terms of explaining beliefs about lotteries. I argue that lottery cases are rather more problematic for COS than TCS. In conclusion, TCS is the most plausible version of credal sensitivitism. (shrink)

We analyze the possible implications of spacetime discreteness for the special and general relativity and quantum theory. It is argued that the existence of a minimum size of spacetime may explain the invariance of the speed of light in special relativity and Einstein’s equivalence principle in general relativity. Moreover, the discreteness of spacetime may also result in the collapse of the wave function in quantum mechanics, which may provide a possible solution to the quantum measurement problem. These interesting results might (...) have some important implications for a complete theory of quantum gravity. (shrink)

The remarkable connections between gravity and thermodynamics seem to imply that gravity is not fundamental but emergent, and in particular, as Verlinde suggested, gravity is probably an entropic force. In this paper, we will argue that the idea of gravity as an entropic force is debatable. It is shown that there is no convincing analogy between gravity and entropic force in Verlinde’s example. Neither holographic screen nor test particle satisfies all requirements for the existence of entropic force in a thermodynamics (...) system. As a result, there is no entropic force in the gravity system. Furthermore, we show that the entropy increase of the screen is not caused by its statistical tendency to increase entropy as required by the existence of entropic force, but in fact caused by gravity. Therefore, Verlinde’s argument for the entropic origin of gravity is problematic. In addition, we argue that the existence of a minimum size of spacetime, together with the Heisenberg uncertainty principle in quantum theory, may imply the fundamental existence of gravity as a geometric property of spacetime. This provides a further support for the conclusion that gravity is not an entropic force. (shrink)

We investigate the implications of protective measurement for de Broglie-Bohm theory, mainly focusing on the interpretation of the wave function. It has been argued that the de Broglie-Bohm theory gives the same predictions as quantum mechanics by means of quantum equilibrium hypothesis. However, this equivalence is based on the premise that the wave function, regarded as a Ψ-field, has no mass and charge density distributions. But this premise turns out to be wrong according to protective measurement; a charged quantum system (...) has effective mass and charge density distributing in space, proportional to the square of the absolute value of its wave function. Then in the de Broglie-Bohm theory both Ψ-field and Bohmian particle will have charge density distribution for a charged quantum system. This will result in the existence of an electrostatic self-interaction of the field and an electromagnetic interaction between the field and Bohmian particle, which not only violates the superposition principle of quantum mechanics but also contradicts experimental observations. Therefore, the de Broglie-Bohm theory as a realistic interpretation of quantum mechanics is problematic according to protective measurement. Lastly, we briefly discuss the possibility that the wave function is not a physical field but a description of some sort of ergodic motion (e.g. random discontinuous motion) of particles. (shrink)

Both motivational internalism and externalism need to explain why sometimes moral judgments tend to motivate us. In this paper, I argue that Dreier’ second-order desire model cannot be a plausible externalist alternative to explain the connection between moral judgments and motivation. I explain that the relevant second-order desire is merely a constitutive requirement of rationality because that desire makes a set of desires more unified and coherent. As a rational agent with the relevant second-order desire is disposed towards coherence, she (...) will have some motivation to act in accordance with her moral judgments. Dreier’s second-order desire model thus collapses into a form of internalism and cannot be a plausible externalist option to explain the connection between moral judgments and motivation. (shrink)

It is shown that the heuristic "derivation" of the Schrödinger equation in quantum mechanics textbooks can be turned into a real derivation by resorting to spacetime translation invariance and relativistic invariance.

This article proposes a term structure model for dual-currency interest rate markets. The model assumes that volatility is a deterministic function of time alone. This volatility structure can reduce the dimension of the required state variables. An important special case is presented, which corresponds essentially to a Vasicek/Hull-White yield curve model in each currency. The model is very useful for pricing cross-currency derivatives.

This article presents a generic model for pricing financial derivatives subject to counterparty credit risk. Both unilateral and bilateral types of credit risks are considered. Our study shows that credit risk should be modeled as American style options in most cases, which require a backward induction valuation. To correct a common mistake in the literature, we emphasize that the market value of a defaultable derivative is actually a risky value rather than a risk-free value. Credit value adjustment (CVA) is also (...) elaborated. A practical framework is developed for pricing defaultable derivatives and calculating their CVAs at a portfolio level. (shrink)

Anosognosia for visual deficits—cases where significant visual deficits go unnoticed—challenges the view that our own conscious experiences are what we know best. We review these widespread and striking failures of awareness. Anosognosia can occur with total blindness, visual abnormalities induced by brain lesions, and eye diseases. We show that anosognosia for visual deficits is surprisingly widespread. Building on previous accounts, we introduce a framework showing how apparently disparate forms of anosognosia fit together. The central idea is that, to notice a (...) deficit, individuals need to form expectations about normal vision, compare expectations and visual input, and judge any mismatch at the metacognitive level. A failure in any of these three steps may lead to unawareness of visual deficits. (shrink)

Lack of a historical sense is the hereditary defect of philosophers. … So what is needed from now on is historical philosophizing, and with it the virtue of modesty.

In this thesis, I explore motivational internalism and externalism, which concern the relationship between moral judgments and motivation. I first introduce the basic terms and different forms of internalism and externalism, including the externalist objections to internalism based on the famous counterexamples. I then argue against externalism by defending and developing Michael Smith’s fetishism argument. I not only respond to the externalist objections to the fetishism argument but also further argue against different externalist explanations of moral motivation that intend to (...) avoid the fetishism charge. Finally, I re-examine different forms of internalism in order to argue for a new form of internalism that can better preserve our internalist intuitions whilst accommodating the externalist counterexamples. My ultimate conclusion will be that the most plausible form of internalism to accept is constitutional, unconditional, relatively strong, direct internalism that is formulated in terms of dispositional desires. (shrink)

We investigate the validity of the field explanation of the wave function by analyzing the mass and charge density distributions of a quantum system. It is argued that a charged quantum system has effective mass and charge density distributing in space, proportional to the square of the absolute value of its wave function. This is also a consequence of protective measurement. If the wave function is a physical field, then the mass and charge density will be distributed in space simultaneously (...) for a charged quantum system, and thus there will exist a remarkable electrostatic self-interaction of its wave function, though the gravitational self-interaction is too weak to be detected presently. This not only violates the superposition principle of quantum mechanics but also contradicts experimental observations. Thus we conclude that the wave function cannot be a description of a physical field. In the second part of this paper, we further analyze the implications of these results for the main realistic interpretations of quantum mechanics, especially for de Broglie-Bohm theory. It has been argued that de Broglie-Bohm theory gives the same predictions as quantum mechanics by means of quantum equilibrium hypothesis. However, this equivalence is based on the premise that the wave function, regarded as a Ψ-field, has no mass and charge density distributions, which turns out to be wrong according to the above results. For a charged quantum system, both Ψ-field and Bohmian particle have charge density distribution. This then results in the existence of an electrostatic self-interaction of the field and an electromagnetic interaction between the field and Bohmian particle, which contradicts both the predictions of quantum mechanics and experimental observations. Therefore, de Broglie-Bohm theory as a realistic interpretation of quantum mechanics is probably wrong. Lastly, we suggest that the wave function is a description of some sort of ergodic motion (e.g. random discontinuous motion) of particles, and we also briefly analyze the implications of this suggestion for other realistic interpretations of quantum mechanics including many-worlds interpretation and dynamical collapse theories. (shrink)

Equity-linked securities with a guaranteed return become popular in a volatile market environment. This paper presents a new model for valuing guaranteed equity-linked notes. We consider a security whose value depends on the performance of a basket of equities averaged over certain points in time, but that is floored by a guaranteed amount. We show that the security’s price is given by the sum of the guaranteed amount plus the price of an Asian style option on the basket above. The (...) model provides analytical formulas for the security’s price as well as for corresponding hedge ratios; these respective formulas appear to be accurate over a wide range of underlying security parameter values, based on numerical testing against a Monte Carlo benchmark, Finally, we apply our method to value a type of segregated fund with a maturity guarantee. (shrink)

Purpose: Although psychopathy is characterized by amoral behavior, literature on the association between psychopathy and moral judgment pattern is mixed. Recent evidence suggests that this may be due to the moderation effect of anxiety (Koenigs, Kruepke, Zeier, & Newman, 2011). The current study aims to examine the psychopathy-utilitarian judgment association in college students. Method: In this study, a group of 302 college students completed a moral judgment test involving hypothetical dilemmas. Their psychopathic traits were assessed by the Psychopathic Personality Inventory (...) – Short Form (PPI-SF) (Lilienfeld & Andrews, 1996). Results: Individuals with higher psychopathic traits were more likely to make utilitarian responses to moral dilemmas. Furthermore, the association between utilitarian responses and psychopathy was more salient for the behavioral factor of psychopathy (PPI-II), and this association was mediated by self-reported aggression. However, the moderating effect of anxiety was not found. Conclusions: These results build upon work on utilitarian moral judgment in psychopathic individuals in a non-incarcerated, non-institutionalized sample, and have important implications for the behavioral correc- tion system. (shrink)

This article presents a comprehensive framework for valuing financial instruments subject to credit risk. In particular, we focus on the impact of default dependence on asset pricing, as correlated default risk is one of the most pervasive threats in financial markets. We analyze how swap rates are affected by bilateral counterparty credit risk, and how CDS spreads depend on the trilateral credit risk of the buyer, seller, and reference entity in a contract. Moreover, we study the effect of collateralization on (...) valuation, since the majority of OTC derivatives are collateralized. The model shows that a fully collateralized swap is risk-free, whereas a fully collateralized CDS is not equivalent to a risk-free one. (shrink)

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement and credit risk can sufficiently explain unsecured credit costs. This (...) finding suggests that failure to properly account for collateralization may result in significant mispricing of derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk. (shrink)

It is shown that the superposed wave function of a measuring device, in each branch of which there is a definite measurement result, does not correspond to many mutually unobservable but equally real worlds, as the superposed wave function can be observed in our world by protective measurement.

This paper argues that the reduced-form jump diffusion model may not be appropriate for credit risk modeling. To correctly value hybrid defaultable financial instruments, e.g., convertible bonds, we present a new framework that relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due (...) to convertible underpricing. Empirically, however, we do not find evidence supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean (...) decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets. (shrink)

This paper presents a Least Square Monte Carlo approach for accurately calculating credit value adjustment (CVA). In contrast to previous studies, the model relies on the probability distribution of a default time/jump rather than the default time itself, as the default time is usually inaccessible. As such, the model can achieve a high order of accuracy with a relatively easy implementation. We find that the valuation of a defaultable derivative is normally determined via backward induction when their payoffs could be (...) positive or negative. Moreover, the model can naturally capture wrong or right way risk. (shrink)

Background— Although one of the main characteristics of psychopaths is a deficit in emotion, it is unknown whether they show a fundamental impairment in appropriately recognizing their own body sensations during an emotion-inducing task. Method— Skin conductance and heart rate were recorded in 138 males during a social stressor together with subjective reports of body sensations. Psychopathic traits were assessed using the Psychopathy Checklist – Revised (PCL-R) 2nd edition (Hare, 2003). Results— Nonpsychopathic controls who reported higher body sensations showed higher (...) heart rate reactivity, but this verbal-autonomic consistency was not found in psychopathic individuals. This mind-body disconnection is particularly associated with the interpersonal-affective factor of psychopathy. Conclusions— Findings are the first to document this body sensations– autonomic mismatch in psychopaths, and suggest that somatic aphasia the inaccurate identification and recognition of one‘s own somatic states may partly underlie the interpersonal-affective features of psychopaths. (shrink)

The one-side defaultable financial derivatives valuation problems have been studied extensively, but the valuation of bilateral derivatives with asymmetric credit qualities is still lacking convincing mechanism. This paper presents an analytical model for valuing derivatives subject to default by both counterparties. The default-free interest rates are modeled by the Market Models, while the default time is modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a (...) better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread. (shrink)

The paper investigates what type of motivation can be given for adopting a knowledge-based decision theory. KBDT seems to have several advantages over competing theories of rationality. It is commonly argued that this theory would naturally fit with the intuitive idea that being rational is doing what we take to be best given what we know, an idea often supported by appeal to ordinary folk appraisals. Moreover, KBDT seems to strike a perfect balance between the problematic extremes of subjectivist and (...) objectivist decision theory. We argue that these alleged advantages do not stand up to a closer scrutiny: KBDT inherits the same kinds of problems as alternative decision theoretic frameworks but doesn’t retain any of the respective advantages. Moreover, differently from other knowledge-action principles advanced in the literature, KBDT cannot fully explain the intuitive connections between knowledge and rational action. We conclude that the most serious challenge for knowledge-based decision theorists is to provide a substantive rationale for the adoption of such a view. (shrink)

Replicated architecture is widely used in the field of real-time collaborative text editor. The idea of address space transformation provides a new way for concurrency control. During concurrent processing, it retraces the document status back to the state when the operations are generated to maintain consistency. However the previous concurrency processes strategy is based on single characters, the transmission cost during processing is too high since every character is packaged and broadcasted to remote sites after they are created by local (...) site. When the network load is high, especially when the network is unstable, this shortage will be even more obvious. Due to this problem, this paper presents a consistency maintenance strategy based on string editing operations, and proposes the string splitting mechanism combined with the idea of the address space transformation in order to maintain consistency. This strategy increases the transmission efficiency while guaranteeing the consistency of the shared document. (shrink)

The LIBOR Market Model has become one of the most popular models for pricing interest rate products. It is commonly believed that Monte-Carlo simulation is the only viable method available for the LIBOR Market Model. In this article, however, we propose a lattice approach to price interest rate products within the LIBOR Market Model by introducing a shifted forward measure and several novel fast drift approximation methods. This model should achieve the best performance without losing much accuracy. Moreover, the calibration (...) is almost automatic and it is simple and easy to implement. Adding this model to the valuation toolkit is actually quite useful; especially for risk management or in the case there is a need for a quick turnaround. (shrink)

This paper proposes a new explanation for the paradoxes related to anthropic reasoning. Solutions to the Sleeping Beauty Problem and the Doomsday argument are discussed in detail. The main argument can be summarized as follows: -/- Our thoughts, reasonings and narratives inherently comes from a certain perspective. With each perspective there is a center, or using the term broadly, a self. The natural first-person perspective is most primitive. However we can also think and express from others’ perspectives with a theory (...) of mind. A perspective’s center could be unrelated to the topic of discussion so its de se thoughts need not to be considered, e.g. the perspective of an outside observer. Let’s call these the third-person perspective. First-person reasoning allows primitive self identification as I am inherently unique as the center of the perspective. Whereas from third-person perspective I am not fundamentally special comparing to others so a reference class of observers including me can be defined. It is my contention that reasonings from different perspectives should not mix. Otherwise it could lead to paradoxes even independent of anthropic reasoning. The paradoxes surrounding anthropic reasoning are caused by the aforementioned perspective mix. Regarding the sleeping beauty problem the correct answer should be double halving. Lewisian halving and thirding uses unique reasonings from both first and third-person perspectives. Indexical probabilities such as “the probability that this is the first awakening” or “the probability of me being one of the first 100 billion human beings” also mixes first- and third-person reasonings. Therefore invalid. Readers against perspectivism may disagree with point 1 and suggest we could reason in objective terms without the limit of perspectives. My argument is compatible with this belief. Objective reasoning would be analytically identical to the third-person perspective. My argument would become that objective reasoning and perspective reasonings should not mix. In the following I would continue to use “third-person perspective” but readers can switch that to “objective reasoning” if they wish so. (shrink)

This article presents a new model for valuing a credit default swap (CDS) contract that is affected by multiple credit risks of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in (...) the CDS market. (shrink)

According to the Rational Threshold View, a rational agent believes p if and only if her credence in p is equal to or greater than a certain threshold. One of the most serious challenges for this view is the problem of statistical evidence: statistical evidence is often not sufficient to make an outright belief rational, no matter how probable the target proposition is given such evidence. This indicates that rational belief is not as sensitive to statistical evidence as rational credence. (...) The aim of this paper is twofold. First, we argue that, in addition to playing a decisive role in rationalizing outright belief, non-statistical evidence also plays a preponderant role in rationalizing credence. More precisely, when both types of evidence are present in a context, non-statistical evidence should receive a heavier weight than statistical evidence in determining rational credence. Second, based on this result, we argue that a modified version of the Rational Threshold View can avoid the problem of statistical evidence. We conclude by suggesting a possible explanation of the varying sensitivity to different types of evidence for belief and credence based on the respective aims of these attitudes. (shrink)

In real-time collaborative graphical editing systems, Object-based Group/Ungroup operations are frequently accessible and practically useful. However, the existing research on these operations of the graphical editing is rare and defective. In this paper, based on Multi-Version strategy and Address Space Transformation method, a new MVSDR algorithm, which is not only applied to simple operations (such as Create, Delete, ChangeATT, etc.), but also suitable for Group/Ungroup ones, is proposed to solve the consistency maintenance problem. The proposed algorithm abandons previous attempts to (...) divide conflict operations into Real-Conflict operations and Resolvable-Conflict ones and to deal with them separately, thus making the algorithm more simple and effective. In addition, an example analysis is also given in this paper to prove the algorithm’s correctness and effectiveness. (shrink)

This paper presents a new model for valuing hybrid defaultable financial instruments, such as, convertible bonds. In contrast to previous studies, the model relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due to convertible underpricing. Empirically, however, we do not find evidence (...) supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This article presents a new model for valuing financial contracts subject to credit risk and collateralization. Examples include the valuation of a credit default swap (CDS) contract that is affected by the trilateral credit risk of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to (...) a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in the CDS market. (shrink)