Behavioral finance has emerged as a new paradigm in financial economics. It deals primarily with the influences of psychology on market finance and with market inefficiencies. The field of psychology, already very present in organizational psychology and decision-making, is slowly opening up...

The paper provides a review of features of restructuring strategies, indicating that distress may limit the choice available. It then introduces the decision theory to show that the final choice may be influenced by objective criteria and by subjective or non-rational criteria as well as by...

Prior research on quot;strategic votingquot; has reached the conclusion that unanimity rule is uniquely bad: it results in destruction of information, and hence makes voters worse off. We show that this conclusion depends critically on the assumption that the issue being voted on is exogenous,...

I study how to allocate control (over one or multiple projects) when people may openly disagree on the optimal course of action.I first show that, in the efficient allocation, complementary decisions should be decided by the same person, while substitute decisions should be decided by different...

The design of fully funded pension plans is affected by governance and incentive problems, as underlined by the experience of several countries. The analytic perspective of contract theory allows to detect the nature of such problems: pension-fund managers have strong incentives to manipulate...

Averaging estimates is an effective way to improve accuracy when combining expert judgments, integrating group members' judgments, or using advice to modify personal judgments. If the estimates of two judges ever fall on different sides of the truth, which we term bracketing, averaging must...

During a period of increasing turbulence and uncertainty in the corporate world, this timely paper contains the complete body of work addressed in the quot;Corporate Defense Insights: Dispatches from the Front Linequot; Qamp;A series (individually published at the RiskCenter throughout the...

From a financial economic perspective, the governing condition of a meritorious civil action is the uncertainty of outcome. Expectation and outcome deviate, and the spread is the measure of uncertainty (or variance). During litigation each party has an option to settle or select trial. The...

This paper identifies a new way to govern the public or private sectors by not limiting the options to markets and hierarchies as considered by economists. Sociologists have identified that associations and clans/communities provide two additional distinct modes of governance. The use of all...