This paper is aimed at assesssing the empirical relevance of the new theory of regulation inspired by the theory of incentives. It contributes to the econometrics of asymmetric information models by using the principal-agent framework for studying the regulatory schemes used in French urban...

In addition to showing the connection between parallel contingent and noncontingent risk comparison problems, we articulate a method for solving both kinds of problems using the "basis" approach. The basis approach has often been used implicitly, but we argue that there is value to making its...

This paper studies a classical extension of the Black and Scholes model of option pricing, often known as the Hull and White model. Our specificity is that the volatility process is assumed not only to be stochastic, but also to have long memory features and properties. We study here the...

In this paper, we compare the attitude towards current risk of two expected-utility-maximizing investors that are identical except that the first investor will live longer than the second one.

This paper studies the design of financial agreements (claims, tightness of relationships) between entrepreneurs and investors, in the case where both must exert costly unobservable efforts to improve the profitability of the firm.

In this paper, we show how a differentiated tax treatment of corporate losses and corporate profits induces the firm to behave in a very specific risk-averse manner.

We investigate in this paper the attitude towards risk of bettors in British horce races. The model we use allows us to go beyond the expected utility framework and to explore various alternative proposals by estimating a multinomial model on 34443-race dataset. We find that rank-dependant...

We modify a standard Baron-Myerson model by assuming that, instead of knowing the cost of nature, the agent has to incur a cost 'g' to learn it.Under these conditions, the principal will offer contracts that, dependingon the value of 'g', try to induce the agent to gather or not to gather...