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The RVT predicts equilibrium prices in a world where investors ignore variance and only care about cumulative returns. Such prices determine intrinsic returns that satisfy the CAPM equation. This paper shows that assets that pay a constant (or constantly increasing) dividend but face each year...
Persistent link: https://www.econbiz.de/10005076993
The Relative Value Theory predicts equilibrium prices in a world in which time value of money is unique, and investors are risk-indifferent and only care about maximizing cumulative returns. This paper shows that RVT’s equilibrium prices determine intrinsic expected returns that satisfy the...
Persistent link: https://www.econbiz.de/10005134946
elicited (violation of procedure invariance). In this paper we examine precisely which classical conditions of rationality it …
Persistent link: https://www.econbiz.de/10005135085
This paper examines the concepts of trust and trustworthiness in the context of a one-sided variation of the prisoner's dilemma, and it evaluates four different categories of solutions to the PD problem: changing player preferences, enforcing explicit contracts, establishing implicit contracts,...
Persistent link: https://www.econbiz.de/10005135123
rationality conditions are formulated, which are called behavioural and habitual rationality. While common knowledge of the former …
Persistent link: https://www.econbiz.de/10005407565
The literary source of the main ideas in Aumann's article ``Backward Induction and Common Knowledge of Rationality" is …
Persistent link: https://www.econbiz.de/10005550875
By reinterpreting Savage axioms as axioms of the social rationality over resource allocations, we derive a social …
Persistent link: https://www.econbiz.de/10005561029