The paper will show tha bottleneck input service sold by its owner to competitors in the supply of final product must be priced in accord with ECPR if ineffeciency in resource allocation is to be prevented.

We attempt to explain the overreaction of asset prices to movements in short-term interest rates, dividends, and asset supplies. The key element of our explanation is a margin constraint that traders face which limits their leverage to a fraction of the value of their assets. Traders may lever...