The Black Scholes Model (BSM) is one of the most important concepts in modern financial theory both in terms of approach and applicability. The BSM is considered the standard model for valuing options; a model of price variation over time of financial instruments such as stocks that can, among...

This paper demonstrates how the transformation of the taxi industry is an example of Coase’s Theorem in practice. The Coase Theorem, as postulated by Nobel Laureate Ronald Coase (1991), is one of the simplest yet profound ideas in economics. The recent advent of new mobile app entrants in the...

In the very popular FOX TV reality show, American Idol, the judges, who are presumably experts in evaluating singing effort, have no voting power when the field is narrowed to the top twenty-four contestants. It is only the votes of viewers that count. In the 2007 season of the show, Simon...

The aim of this paper was to verify if reminders of money influence the tendency to spend one’s resources on kin and friends. Previous research on the mere exposure to money concentrated only on behaviors directed at anonymous partners. However, in such situation the reciprocity rule is of...

Behaviourism is the view that preferences, beliefs, and other mental states in social-scienti�c theories are auxiliary constructs re-describing people's behav- ioural dispositions. Mentalism is the view that they capture real phenomena, no less existent than the unobservable entities and...

We consider commuting in a congested urban area. While an efficient time-varying toll may eliminate queuing, a toll may not be politically feasible. We study the benefit of a substitute: a parking fee at the workplace. An optimal time-varying parking fee is charged at zero rate when there is...

This paper provides a briefing for developing countries to apprise them of the main issues which are relevant for development and social welfare in relation to the present and prospective discussions on competition policy in the WTO, UNCTAD, OECD and other fora. Although this is the immediate...

This article aims to deepen the knowledge on consumer choices from the microeco-nomic perspective so as to better understand the behaviour of home buyers and its impact on the housing market. First, we provide an analysis of housing understood as a consumer and investment good. We then discuss...

I argue that a form of consciousness may be found in American economic history, one which is both mathematically demonstrable and important. In this book I present a model of economic and political growth based upon systematic addition. We begin with a philosophic model of trade (pp. 34-46);...

The paper attempts to test the following hypotheses: (i) Are people generally self interested, (ii) If people tend to be generous, what is the motive, i.e., either they fear rejection or do they have a preference for fairness, and (iii) Is there any behavioral difference in bargaining between...