On December 12, Dr. Azar Abizade of the School of Business at the Azerbaijan Diplomatic Academy held a seminar at ISET about flight rescheduling problems and the incentives for airlines to report their preferences. Research into this problem was conducted according to mechanism design and matching theory.
Airports schedule landing slots far in advance of their actual execution, but sometimes due to bad weather or other extreme conditions the schedule becomes inefficient or unfeasible. Some flights are canceled and some are delayed. The Federal Aviation Administration’s (FAA) aim is to implement a mechanism which will automatically reassign slots to flights based on the information reported by the airlines.
On December 5, ISET hosted Levan Akhvlediani, General Manager of Kagri Limited, who delivered a seminar on physical commodity trading, which takes place around the world. According to Mr. Akhvlediani, being a trader is a very demanding job that carries high risk, but at the same time is very interesting. For any successful trader the key factors are knowing information about the market and understanding market opportunities. The law of trade (as for most businesses) is - “buy low, sell high”.
The seminar nicely combined Mr. Akhvlediani’s own success stories with the theories of physical commodity trading. At the beginning of the presentation he introduced the Incoterms (EXW, FCA, FOB, CFR and CIF) that define how the obligations of delivery are split among buyers and sellers and are always included in the terms of delivery.
On December 4, ISET hosted a lecture by Professor Avner Shaked from the University of Bonn – one of the greatest modern game theorists who also delivers courses in game theory and industrial organizations at ISET. The talk was devoted to a serious flaw uncovered concerning famous economic journals the Quarterly Journal of Economics (QJE) and Econometrica. The flaw is that the papers "A theory of fairness, competition, and cooperation", by E. Fehr and K.M. Schmidt in QJE (1999) and "Fairness and contract design", by E. Fehr, A. Klein and K.M. Schmidt in Econometrica (2007), which both concerned behavioral and experimental economics, exposed logical and scientific imperfections. As Prof. Shaked stated: “Experimental economics is good and I have nothing against it, but the problem is that the people who do it are not good”. Concerning the seriousness of this topic, attendants of the presentation included ISET faculty members, students and even graduates.
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