Subject classifications: Terrorism; Counterinsurgency; Intelligence; Defense; Covert networks; Affiliation networks.

Covert organizations are constantly faced with a tradeoff between secrecy and operational efficiency. Lindelauf, Borm and Hamers (2008) developed a theoretical framework to deter- mine optimal homogeneous networks taking the above mentioned considerations explicitly into account. In this paper...

In order to be able to devise successful strategies for destabilizing terrorist organizations it is vital to recognize and understand their structural properties. This paper deals with the opti- mal communication structure of terrorist organizations when considering the tradeoff between secrecy...

We look at the implications of uncertain monetary policy preferences for the targeting and contracting approach to monetary stability. It turns out that in presence of uncertain preferences a linear incentive contract in the sense of Walsh (1995) performs better in terms of social welfare than...

This paper provides an overview of existing research on how corporate restructuring affects the wealth of creditors.Restructuring is defined as any transaction that affects the firm's underlying capital structure.Thus, it reaches well beyond asset restructuring and includes transactions such as...

I use a convenient value breakdown in order to obtain analytic solutions for finitematurity American option prices.Such a barrier-option-based breakdown yields an analytic lower bound for the American option price, which is as price-tight as the Barone-Adesi and Whaley (1987) analytic value...

Equity Default Swaps are new equity derivatives designed as a product for credit investors.Equipped with a novel pricing result, we provide closedform values that give an analytic contribution to the viability of cross-asset trading related to credit risk.

Risk premia in the consumption capital asset pricing model depend on preferences and dividend. We develop a decomposition which allows a separate treatment of both components. We show that preferences alone determine the risk-return tradeoff measured by the Sharpe-ratio. In general, the...

We study a novel issue in the real-options-based technology innovation literature by means of double barrier contingent claims analysis.We show how much a ¯rm with the monopoly over a project is willing to spend in investment technology innovation that softens the irreversible cost of accessing...