I develop a model in which the ability to repay a loan is private information that can only be verified by the bank at some costs, which can be recovered from the borrower if it has reported untruthfully. The bank will optimize the resources it spends on this auditing of borrowers and the...

It is shown that the widely used risk measures standard deviation and value at risk do not always reflect risk preferences accurately. To overcome these problems in risk measurement a class of coherent risk measures has been proposed. We introduce the idea behind these measures and provide an...

We have developed an agent-based model for competition among payment cards networks. In our model the competitors in the payment card market learn by observing model-based interactions between costumers and merchants at the point of sale (POS). The interactions are represented on lattice with...

This paper introduces different costs into the Dutta-Madhavan model of implicit collusion between market makers. It will be shown how different costs of market making influence the possibility of implicit collusion and the price setting. The derived model will then be applied to the case of...