In this paper, some decentralized control problems composed of two subsystems are addressed from a special perspective. First, it is pointed out that some subsystems must be unstable to stabilize the overall interconnected system in some special cases. Then, a special kind of decentralized...

This paper derives an equilibrium formula for pricing European options and other contingent claims which allows incorporating impacts of several important economic variable on security prices including, among others, representative agent preferences, future volatility and rare jump events. The...