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The effect of policyholders' rationality on unit-linked life insurance contracts with surrender guarantees

Li, Jing; Szimayer, Alexander - 2010

stopping problem, we propose a more realistic approach accounting for policyholders’ rationality in exercising their surrender …

Persistent link: https://www.econbiz.de/10009125819

Limited liability and option contracts in models with sequential investments

Lülfesmann, Christoph - 2001

shown to differ across financing modes. If renegotiation is admitted, the first best can still be attained unless A …'s bargaining position is too strong. Otherwise, B financing or C financing may become strictly preferable, and a combination of …

Persistent link: https://www.econbiz.de/10011538898

Dynamic efficiency and Pareto Optimality in a stochastic OLG model with production and social security

Barbie, Martin; Hagedorn, Marcus; Kaul, Ashok - 2000 - Revised, June 2000

We analyze the interaction between risk sharing and capital accumulation in a stochastic OLG model with production. We give a complete characterization of interim Pareto optimality. Our characterization also subsumes equilibria with a PAYG social security system. In a competitive equilibrium...

Persistent link: https://www.econbiz.de/10011539178

Team production, sequential investments and stochastic payoffs

Lülfesmann, Christoph - 2000

framework, it is possible to implement the first best even if the investment return is highly uncertain. The optimal contract …

Persistent link: https://www.econbiz.de/10011539907

Asset ownership and contractability of interaction

Roider, Andreas (contributor) - 2002 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10001825449

Delegation of authority as an optimal (in)complete contract

Roider, Andreas (contributor) - 2003 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10001828791

Standard breach remedies, quality thresholds, and cooperative investments

Stremitzer, Alexander - 2008

When investments are nonverifiable, inducing cooperative investments with simple contracts may not be as difficult as previously thought. Indeed, modeling "expectation damages" close to legal practice, we show that the default remedy of contract law induces the first best. Yet, in order to lower...

Persistent link: https://www.econbiz.de/10003850654

Legal unbundling can be a golden mean between vertical integration and separation

Höffler, Felix (contributor); Kranz, Sebastian (contributor) - 2007

We study an industry in which an upstream monopolist supplies an essential input at a regulated price to several downstream firms. Legal unbundling means that a downstream firm owns the upstream firm but this upstream firm is legally independent and maximizes its own upstream profits. We allow...

Persistent link: https://www.econbiz.de/10003612735

Imperfect legal unbundling of monopolistic bottlenecks

Höffler, Felix (contributor); Kranz, Sebastian (contributor) - 2007

We study an industry with a monopolistic bottleneck (e.g. a transmission network) supplying an essential input to several downstream firms. Under legal unbundling the bottleneck must be operated by a legally independent upstream firm, which may be partly or fully owned by an incumbent active in...

Persistent link: https://www.econbiz.de/10003612741

A new approach to the irreversible investment problem

Su, Xia (contributor) - 2006

This paper solves the irreversible investment decision problem under uncertainty by a new real options method. It … yields a Shadow Net Present Value rule such that the investment is triggered only when the shadow revenue of the investment … reaches the investment cost. This paper hence corrects and extends the conventional Net Present Value (NPV) rule by figuring …

Persistent link: https://www.econbiz.de/10003421142