Narrow search
Showing 1 - 10 of 20,442
Cover Image
Risk-Sharing or Risk-Taking? Counterparty Risk, Incentives and Margins
Biais, Bruno - 2012
We analyze optimal hedging contracts and show that although hedging aims at sharing risk, it can lead to more risk-taking. News implying that a hedge is likely to be loss-making undermines the risk-prevention incentives of the protection seller. This incentive problem limits the capacity to...
Persistent link: https://www.econbiz.de/10013113017
Cover Image
Risk-Sharing or Risk-Taking? Counterparty Risk, Incentives and Margins
Biais, Bruno - 2020
Derivatives activity, motivated by risk-sharing, can breed risk-taking. Bad news about the risk of the asset underlying the derivative increases the expected liability of a protection seller and undermines her risk-prevention incentives. This limits risk-sharing, and may create endogenous...
Persistent link: https://www.econbiz.de/10012857581
Cover Image
STO vs. ICO : a theory of token issues under moral hazard and demand uncertainty
Miglo, Anton - In: Journal of risk and financial management : JRFM 14 (2021) 6, pp. 1-35
This paper considers a financing problem for an innovative firm that is launching a web-based platform. The … also generates new predictions regarding the effect of different variables on the choice of financing method that have not …
Persistent link: https://www.econbiz.de/10012587665
Cover Image
At the movies : risk sharing and the economics of exhibition contracts
Filson, Darren; Fabre, Fernando; Nava, Alfredo; … - 2001
The current literature on sharing contracts emphasizes the importance of asymmetric information and typically assumes that one party is risk neutral while the other is risk averse. This paper describes a real-world contract that is widely used - the movie exhibition contract - and argues that...
Persistent link: https://www.econbiz.de/10011565681
Cover Image
SME collateral : risky borrowers or risky behaviour?
Carroll, James; McCann, Fergal - 2017
Persistent link: https://www.econbiz.de/10011657102
Cover Image
Risky arbitrage and collateral policies
Zhang, Ally Quan - 2017 - Last Update: October 6, 2017
collateral to support arbitrage trades. We show that with volatile asset demands, arbitrage becomes risky. With information … frictions, a looser collateral policy might render the economy more vulnerable to extremely large demand shocks, while a tighter … collateral constraint helps maintain the stability at the cost of market liquidity supply …
Persistent link: https://www.econbiz.de/10011874838
Cover Image
Environmental Uncertainty and IT Governance : A Moral Hazard Perspective
Xue, Ling; Ray, Gautam; Gu, Bin - 2010
Prior research considers the IT governance decision to be a trade-off between the cost-efficiency of centralized information processing, and the responsiveness provided by local information processing. Environmental uncertainty plays a major role in this trade-off. In uncertain environments, the...
Persistent link: https://www.econbiz.de/10014219115
Cover Image
Uncertainty, Delegation and Incentives
Rantakari, Heikki - 2021
in work on executive compensation and franchising, (ii) complementarities in organizational design and (iii) determinants …
Persistent link: https://www.econbiz.de/10013310610
Cover Image
Genetic Testing with Primary Prevention and Moral Hazard
Bardey, David; De Donder, Philippe - 2014
We develop a model where a genetic test reveals whether an individual has a low or high probability of developing a disease. A costly prevention effort allows high-risk agents to decrease this probability. Agents are not obliged to take the test, but must disclose its results to insurers, and...
Persistent link: https://www.econbiz.de/10014167895
Cover Image
Collateralized borrowing and increasing risk
Phelan, Gregory - 2015
Persistent link: https://www.econbiz.de/10011333118