Based on a classical financial market model different model variants known from the literature are discussed and analyzed, each focussing on modeling financial markets as a nonlinear dynamic system by introducing the formation of (heterogeneous) beliefs about future asset prices into the model...

We combine general equilibrium theory and théorie générale of stochastic processes to derive structural results about equilibrium state prices.

In developing and testing a mediating model of psychic distance, this paper bridges the gap between two distinct approaches to the concept of psychic distance – defining and measuring the construct in terms of exogenous national level differences, and defining and measuring it in terms of...

Psychic distance, as described in the Uppsala internationalization model, is based on the impediments to information flows between a country market and a firm. The greater the impediments, the longer is the distance. The operationalization of psychic distance in empirical investigations is most...

In developing and testing a mediating model of psychic distance, this paper bridges the gap between two distinct approaches to the concept on psychic distance - defining and measuring the construct in terms of exogenous national level differences, and defining and measuring it in terms of the...

The consumption capital asset pricing model is the standard economic model used to capture stock market behavior. However, empirical tests have pointed out to its inability to account quantitatively for the high average rate of return and volatility of stocks over time for plausible parameter...

Conventional wisdom says that economic surplus is created when the cost of litigation is foregone in favor of settlement, a theory flowing from the Coase Theorem. The cost-benefit analysis weighs settlement against the expected value of litigation net of transaction cost. This calculus yields...

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...

I show that relative levels of aggregate consumption and personal oil consumption provide anexcellent proxy for oil prices, and that high oil prices predict low future aggregate consumptiongrowth. Motivated by these facts, I add an oil consumption good to the long-run risk model of Bansal and...

For a continuous-time financial market with a single agent, we establish equilibrium pricing formulae under the assumption that the dividends follow an exponential Lévy process. The agent is allowed to consume a lump at the terminal date; before, only flow consumption is allowed. The agent's...