We assume a multi-agent model based on Parrondo’s games. The model consists of game A between individuals and game B. In game A, two behavioral patterns are defined: competition and inaction. A controlled alternation strategy of behavioral pattern that gives a single player the highest return...

In our previous study [Zhu et al., Quantum game interpretation for a special case of Parrondo’s paradox, Physica A 390 (2011) 579], the capital-dependent Parrondo’s game where one game depends on the capital modulus M=4 was shown not to have a definite stationary probability distribution and...

We propose a new framework to explain the factor structure in the full cross section of Treasury bond returns. Our method unifies non-parametric curve estimation with cross-sectional factor modeling. We identify smoothness as a fundamental principle of the term structure of returns. Our approach...

This paper investigates whether the late payment problem exists among corporations in the US. Our results suggest that liquidity shortage and strategic intention are the main causes of late payments. While large firms deliberately take advantage of their market power to “squeeze suppliers”,...

This paper investigates whether overleverage identifies companies' strategic default incentives. The results show that overlevered firms have lower equity beta than their counterparts. The strategic default option becomes more valuable when the firms are overlevered. Firms are more likely to be...

This paper investigates the effect of corporate governance quality on firms' security issuance decisions between equity and debt and the subsequent use of proceeds from the issuance. We use a new governance proxy from Datastream ESG - Asset 4 to directly measure firms' corporate governance...

We develop a conditional factor model for the term structure of treasury bonds, which unifies non parametric curve estimation with cross-sectional asset pricing. Our factors correspond to the optimal non-parametric basis functions spanning the discount curve. They are investable portfolios...

A multi-agent Parrondo’s model is proposed in the paper. The model includes link A based on the rewiring mechanism (the network evolution) + game B (dependent on the spatial neighbors). Moreover, to produce the paradoxical effect and analyze the “agitating” effect of the network...

By using the discrete Markov chain method, Parrondo’s paradox is studied by means of theoretical analysis and computer simulation, built on the case of game AB played in alternation with modulus M=4. We find that such a case does not have a definite stationary probability distribution and that...

Based on the original Parrondo’s game and on the case where game A and game B are played randomly with modulo M=4, the processes of the game are divided into odd and even numbered plays, where the probability of playing game A in odd numbers is γ1 and the probability of playing game A in even...