Signaling models contributed to the corporate finance literature by formalizing "the informational content of dividends" hypothesis. However, these models are under criticism as the empirical literature found weak evidences supporting a central prediction: the positive relationship between...

This paper studies a class of one-dimensional screening problems where the agent's utility function does not satisfy the Spence-Mirrlees condition (SMC). The strength of the SMC for hidden information problems is to provide a full characterization of implementable contracts using only the local...

Wary consumers overlook gains but not losses in remote sets of dates or states. As preferences are upper but not lower, Mackey semi-continuous, Bewleyʼs (1972) [4] result on existence of equilibrium whose prices are not necessarily countably additive holds. Wariness is related to lack of myopia...

We extended the Cole and Kehoe model (1996) by adding trade and debt denominated in national currency. We then evaluated some external debt defaults and steep national currency devaluations occurred during last decades. Although default is unlikely, steep devaluation has been repeatedly...

This paper considers pricing rules of single-period securities markets with finitely many states and without arbitrage opportunities. Our main result characterize those pricing rules C that are super-replication prices of a frictionless incomplete asset structure. This characterization relies on...

We prove that under mild conditions individually rational Pareto optima will exist

We prove the existence of monotonic pure strategy equilibrium for many types of asymmetric auctions with n bidders and unitary demands, interdependent values and independent types. The assumptions require monotonicity only in the own bidder's type. The payments can be a function of all bids....