People have the natural tendency to be optimistic and believe that good outcomes in the future are more likely, but also want to avoid overestimation that could result in bad decision-making. Brunnermeier, Gollier and Parker (2005, 2007) established an optimal beliefs framework that balances...

Almost all firms repurchase shares gradually through open market repurchase (OMR) programs as opposed to using the quicker alternative of tender offers. In contrast, issue methods are both more diverse, and often quicker: while a significant minority of firms issue shares using at-the-market...

Benchmark crude oils exhibited dramatic fluctuations in price spreads in the recent decade, a phenomenon that rarely occurred in earlier decades. This paper develops a rational expectations two-period model of spatial price equilibrium, and departs from standard models by assuming increasing...

Securities are often designed under competition. This paper studies bidders' security design when they compete for a common-value investment opportunity. Out of a wide range of securities, bidders offer debt financing, the security family with the lowest information sensitivity. This choice is...