Optimal contracting with effort and misvaluation

We propose a new continuous-time contracting model, in which the firm value process can only be observed with noise, and there are two sources of moral hazard: the agent’s effort and misvaluation. The principal can induce the agent to alter the perceived fundamental value of the firm through misvaluation, thus changing the market estimate of that value. We consider two cases in detail: the one in which the market correctly anticipates only the effort, and the other in which it correctly anticipates both the effort and the amount of misvaluation. In the first case, we find that it is optimal for the principal to induce the agent to apply a non-zero amount of misvaluation. Using calculus of variation techniques, we find the optimal pay-per-performance sensitivity (PPS) of the contract and optimal effort and misvaluation amount, by means of solving of a second order ordinary differential equation. In the second case, which can be viewed as an extension of the seminal Holmstrom-Milgrom model to the case of noisy observations, we find that the optimal misvaluation value is zero, and we compare the resulting optimal contract to the Holmstrom-Milgrom contract.     

Oscillation theorems for symplectic difference systems

We consider symplectic difference systems involving a spectral parameter, together with the Dirichlet boundary conditions. The main result of the paper is a discrete version of the so-called oscillation theorem which relates the number of finite eigenvalues less than a given number to the number of focal points of the principal solution of the symplectic system. In two recent papers the same problem was treated and an essential ingredient was to establish the concept of the multiplicity of a focal point. But there was still a rather restrictive condition needed, which is eliminated here by using the concept of finite eigenvalues (or zeros) from the theory of matrix pencils.     

Analysis of the flows of incompressible fluids with pressure dependent viscosity fulfilling <Emphasis Type="Italic">ν</Emphasis>(<Emphasis Type="Italic">p</Emphasis>, ·) → + ∞ AS <Emphasis Type="Italic">p</Emphasis> → + ∞

Over a large range of the pressure, one cannot ignore the fact that the viscosity grows significantly (even exponentially) with increasing pressure. This paper concerns long-time and large-data existence results for a generalization of the Navier-Stokes fluid whose viscosity depends on the shear rate and the pressure. The novelty of this result stems from the fact that we allow the viscosity to be an unbounded function of pressure as it becomes infinite. In order to include a large class of viscosities and in order to explain the main idea in as simple a manner as possible, we restrict ourselves to a discussion of the spatially periodic problem. K. R. Rajagopal thanks the National Science Foundation for its support.     

Partitions of a Polytope and Mappings of a Point Set to Facets

Three theorems of this paper generalize previous results of the author on conjectures of A. Bezdek and V.V. Proizvolov. They show the existence of mappings from a given point set to the set of facets of a given polytope that satistfy some special conditions. Developing the same technique, some results on convex polytope partitions are presented, two of them dealing with partitions with prescribed measures of parts. Then we prove a corollary on the existence of a possibly nonconvex polytope with a given set of vertices, containing given points in its interior. We also consider problems of the following type: find an assignment of vectors from a given set to the parts of a given convex partition of ℝⁿ so that the shifts of the parts by their corresponding vectors either do not intersect by interior points or cover ℝⁿ     

On topological properties of the Hartman-Mycielski functor

We investigate some topological properties of a normal functorH introduced earlier by Radul which is some functorial compactification of the Hartman-Mycielski construction HM. We prove that the pair (H X, HMY) is homeomorphic to the pair (Q, σ) for each nondegenerated metrizable compactumX and each denseσ-compact subsetY.     

Frames and the Feichtinger conjecture

We show that the conjectured generalization of the Bourgain-Tzafriri restricted-invertibility theorem is equivalent to the conjecture of Feichtinger, stating that every bounded frame can be written as a finite union of Riesz basic sequences. We prove that any bounded frame can at least be written as a finite union of linearly independent sequences. We further show that the two conjectures are implied by the paving conjecture. Finally, we show that Weyl-Heisenberg frames over rational lattices are finite unions of Riesz basic sequences.

     

Weak maximum principle and accessory problem for control problems on time scales

In this paper we derive the first and second variations for a nonlinear time scale optimal control problem with control and state-endpoints equality constraints. Using the first variation, a first order necessary condition for weak local optimality is obtained under the form of a weak maximum principle generalizing the Dubois–Reymond Lemma to the optimal control setting and time scales. A second order necessary condition in terms of the accessory problem is derived by using the nonnegativity of the second variation at all admissible directions. The control problem is studied under a controllability assumption, and with or without the shift in the state variable. These two forms of the problem are shown to be equivalent.     

Rough set approach to multiple criteria classification with imprecise evaluations and assignments

Dominance-based Rough Set Approach (DRSA) has been introduced to deal with multiple criteria classification (also called multiple criteria sorting, or ordinal classification with monotonicity constraints), where assignments of objects may be inconsistent with respect to dominance principle. In this paper, we consider an extension of DRSA to the context of imprecise evaluations of objects on condition criteria and imprecise assignments of objects to decision classes. The imprecisions are given in the form of intervals of possible values. In order to solve the problem, we reformulate the dominance principle and introduce second-order rough approximations. The presented methodology preserves well-known properties of rough approximations, such as rough inclusion, complementarity, identity of boundaries and precisiation. Moreover, the meaning of the precisiation property is extended to the considered case. The paper presents also a way to reduce decision tables and to induce decision rules from rough approximations.     

Killing tensors as irreducible representations of the general linear group

We show that the vector space of fixed valence Killing tensors on a space of constant curvature is naturally isomorphic to a certain highest weight, irreducible representation of the general linear group. The isomorphism is equivariant in the sense that the natural action of the isometry group corresponds to the restriction of the linear action to the appropriate subgroup. As an application, we deduce the Delong–Takeuchi–Thompson formula on the dimension of the vector space of Killing tensors from the classical Weyl dimension formula. To cite this article: R.G. McLenaghan et al., C. R. Acad. Sci. Paris, Ser. I 339 (2004).