This paper is concerned with the representation of preferences which do not satisfy the ordinary axioms for state-independent utilities.

In a simple parametric general equilibrium model with S states of nature and K < S firms - and thus potentially incomplete markets-, rates of super majority rule p€[1/2, 1] are computed which guarantee the existence of p -majority stable production equilibria : within each firm, no alternative production plan can rally a proportion bigger than p of the shareholders, or shares (depending on the governance), against the equilibrium. The smallest p are obtained for announced production plans whose span contains the ideal consumptions of all K mean shareholders. This is done under various governances. These rates of super majority are shown to be always smaller than Caplin and Nalebuff (1988, 1991) bound of 1-1/e ~ 0.64. Moreover, simple majority production equilibria are shown to exist for any initial distribution of types when K=S-1, and for symmetric distributions of types as soon as K > S/2. Finally, through parametric examples, these rates are shown to decrease with the homogeneity of the shareholders' beliefs on the probabilities of the states of nature, and to increase with the shareholders'...</s>

Presentation of the PLS regression

In a three-period finite competitive exchange economy with incomplete financial markets and retrading, we show the generic existence of financial innovation which decreases equilibrium price volatility (as well as innovation which increases it). The existence is obtained under conditions of...

In this paper, the authors study the possibility of controlling asset price volatility through financial innovation in a three-period finite competitive exchange economy with incomplete financial markets and retrading.

We examine how mark-to-market accounting affects investment decisions in an agency model with reputation concerns. Reporting the current market value of a firm's assets in the financial statements can serve as a disciplining device because the information contained in the market price provides a...

It is commonly argued that dynamic consistency, consequentialism and non-expected utility are incompatible. The first aim of this paper is to rebut such arguments, by targeting the implicit assumption that the relevant contingencies correspond to objective resolutions of uncertainty (that is,...

Consistent with salience theories of choice, we find that managers overreact to salient risks. We study how managers respond to the occurrence of a hurricane event when their firms are located in the neighborhood of the disaster area. We find that the sudden shock to the perceived liquidity risk...

Les notions de point de référence et d’aversion aux pertes sont deux éléments essentiels de la prospect theory, qui constitue à ce jour la théorie la plus reconnue concernant la représentation de la prise de décision individuelle dans le risque. L’objectif de cet article est de...