In this paper, we develop a novel model to forecast the volatility of S&P 500 futures returns by considering measures of limits to arbitrage. When arbitrageurs face constraints on their trading strategies, option prices can become disconnected from fundamentals, resulting in a distortion that...

In this paper, we construct a general framework that encompasses several existing models to explore when a team performance or production functions admits an individual hiring criterion: a scoring rule applied to individuals such that the optimal team consists of the highest scoring individuals....

In this paper, we construct a general model of diverse problem solvers of limited abilities. We use this model to derive two main results: (1) a collection of diverse, bounded problem solvers can locate optimal solutions to difficult problems and (2) a collection of problem solvers of diverse...