AMS classifications: 90D12; 90B35

In rational, efficiently functioning and complete markets, returns on derivative and underlying securities should be perfectly contemporaneously correlated.Due to market imperfections, one of these markets may reflect information faster.The use of high-frequency data and the choice for a small...

This paper shows that cost allocation can endogenously arise as a coordination mechanism in a decentralized firm.This result is derived in a setting with multiple (internally supplied) resources shared by multiple users, which constitutes a departure from previous literature.While standard cost...