Philip Kurian, a theoretical physicist and founding director of the Quantum Biology Laboratory (QBL) at Howard University in Washington, D.C., has used the laws of quantum mechanics, the fundamental physics of computation, and the QBL’s discovery of cytoskeletal filaments exhibiting quantum optical features, to set a drastically revised upper bound on the computational capacity of carbon-based life in the entire history of Earth. Published as a single-author research article in Science Advances, Kurian’s latest work conjectures a relationship between this information-processing limit and that of all matter in the observable universe.

Purpose

We estimate the marginal cost curve of each dealer in each auction, based on structural models of the multiunit discriminatory-price auction.

Design/methodology/approach

Auction theory has ambiguous implications regarding the relative performance of three formats of multiunit auctions: uniform-price, discriminatory-price and Vickrey auctions. We evaluate the performance of these three auction formats using bid-level data of the Federal Reserve’s purchase auctions of agency MBS from June 2014 through November 2014.

Findings

Our results suggest that neither uniform-price nor Vickrey auctions outperform discriminatory-price auctions in terms of the total expenditure. However, Vickrey auctions outperform discriminatory-price auctions in terms of efficiency, with the efficiency gain around 0.74% of the surplus that dealers extract on average.

Originality/value

To the best of our knowledge, this paper provides the first structural analysis of the auctions used by the Federal Reserve in implementing its monetary policies.

How gravity causes a perfectly spherical ball to roll down an inclined plane is part of elementary school physics canon. But the world is messier than a textbook.   

Scientists in the Harvard John A. Paulson School of Engineering and Applied Sciences (SEAS) have sought to quantitatively describe the much more complex rolling physics of real-world objects. Led by Professor L. Mahadevan, they combined theory, simulations, and experiments to understand what happens when an imperfect, spherical object is placed on an inclined plane.