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Schmidbauer, Eric - Department of Business Economics and Public Policy, … - 2013

Are new versions of products necessarily better? We analyze product innovation by a firm that engages in research and development designed to improve an existing product, the outcome of which is uncertain. If the firm adopts the innovation its modified product appears to consumers as new and...

Persistent link: https://www.econbiz.de/10011096397

Jumps in Option Prices and Their Determinants: Real-time Evidence from the E-mini S&P 500 Option Market

Kapetanios, George; Neumann, Michael; Skiadopoulos, George - School of Economics and Finance, Queen Mary - 2014

We study the real-time characteristics and drivers of jumps in option prices. To this end, we employ high frequency data from the 24-hour E-mini S&P 500 options market. We find that option prices do not jump simultaneously across strikes and maturities and are uncorrelated with jumps in the...

Persistent link: https://www.econbiz.de/10011099075

Unveiling information on opportunity costs in REDD: Who obtains the surplus when policy objectives differ?

Delacote, Philippe; Palmer, Charles; Bakkegaard, Ryiong Kim - Département Sciences Sociales, Agriculture et … - 2014

Improving information about individual opportunity costs of deforestation agents has the potential to increase the efficiency of REDD when it takes the form of a payment for environmental services scheme. However, objectives pursued in REDD projects may vary across policy makers. Within a...

Persistent link: https://www.econbiz.de/10011099083

Land Development Restrictions and Preemptive Action - On the Benefits of Differentiated Regulation

Lange, Andreas; Liu, Xiangping - In: Strategic Behavior and the Environment 4 (2014) 4, pp. 393-414

We address the problem of preemptive land development to avoid future regulation. We demonstrate that differentiated … mechanism allows some landowners to face less stringent future regulation levels against a payment that is made ex ante or is … anticipated ex ante. More generally, agents (landowners) may voluntarily commit to more stringent regulation if this gives them …

Persistent link: https://www.econbiz.de/10011099774

Innovations in Information Technology and the Mortgage Market

Guler, Bulent - In: Review of Economic Dynamics

In this paper I analyze the effects of innovations in information technology on the mortgage and housing markets using a life-cycle model with incomplete markets and idiosyncratic income, as well as moving and house price shocks. I explicitly model the housing tenure choices of households....

Persistent link: https://www.econbiz.de/10011103247

Investment busts, reputation, and the temptation to blend in with the crowd

Grenadier, Steven R.; Malenko, Andrey; Strebulaev, Ilya A. - In: Journal of Financial Economics 111 (2014) 1, pp. 137-157

protect their reputations. Agents delay abandonment attempting to signal quality. When a public common shock forces … if they are unaffected by the shock. Such “blending in with the crowd” effect creates an additional incentive to delay … abandonment ahead of the shock, leading to accumulation of “living dead” projects, which further amplifies the shock. The …

Persistent link: https://www.econbiz.de/10011039201

Dispersion in beliefs among active mutual funds and the cross-section of stock returns

Jiang, Hao; Sun, Zheng - In: Journal of Financial Economics 114 (2014) 2, pp. 341-365

We propose a measure of dispersion in fund managers׳ beliefs about future stock returns based on their active holdings, i.e., deviations from benchmarks. We find that both the level of and the change in dispersion positively predict subsequent stock returns on a risk-adjusted basis. This effect...

Persistent link: https://www.econbiz.de/10011039248

Matching auction with winner’s curse and imperfect financial markets

Matros, Alexander - In: Economics Letters 115 (2012) 3, pp. 500-503

This paper explains how and why the Matching Auctions work better with Imperfect Financial Markets. We show that an efficient outsider can obtain a “good” project even if the insider has informational advantage.

Persistent link: https://www.econbiz.de/10011041778

Common-value contests with asymmetric information

Wärneryd, Karl - In: Economics Letters 120 (2013) 3, pp. 525-527

We consider two-player, perfectly discriminatory, common-value contests (or all-pay auctions), in which one player knows the value of the contested object with certainty, and the other knows only its prior distribution. We show, among other things, that in equilibrium the players win with equal...

Persistent link: https://www.econbiz.de/10011041833

A Comparison of the Effects of Earnings Disclosures on Information Asymmetry: Evidence from France and the U.S.

Gajewski, Jean-François; Quéré, Bertrand ¨P. - In: The International Journal of Accounting 48 (2013) 1, pp. 1-25

This study investigates how the release of interim and annual earnings announcements affects information asymmetry in the French and U.S. stock markets. There appears to be a high degree of market scrutiny around interim earnings announcement dates in the U.S. market. Asymmetric information...

Persistent link: https://www.econbiz.de/10011042095