To find out whether the model misspecification matters for hedging accuracy, we carefully select six increasingly complicated asset models, i.e., the Black-scholes (BS) model, the Merton model (M), the Heston (H) model, the Heston jump-diffusion model (HJ), the double Heston (dbH) model and the...

A simplex-centroid design for q mixture components comprises of all possible subsets of the q components, present in equal proportions. The design does not contain full mixture blends except the overall centroid. In real-life situations, all mixture blends comprise of at least a minimum...

We report experimental results for a twice-played prisoners' dilemma in which the players can choose the allocation of the stakes across the two periods. Our point of departure is the assumption that some (but not all) people are principled to "do the right thing," or cooperate, as long as their...