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Uses and Misuses of Arbitrage in Financial Theory, and a Suggested Alternative

García Iborra, Rafael; Howden, David - 2016

Despite being a mainstay of modern economic theory, the simple concept of arbitrage is sorely misused. In this paper we overview such instances, and offer an alternative definition. Most applications of arbitrage use it as a general equilibrating tendency irrespective of whether the outcome is...

Persistent link: https://www.econbiz.de/10015256457

Managing Employees 'Insides' to Remedy Agency Problems? A Model of Transformational Leadership

Donze, Jocelyn; Simard-Casanova, Olivier - 2018

We consider a leader who can choose between a transactional or a transformational style of leadership to motivate a team of followers, in presence of moral hazard and free riding. Transformational leadership extends transactional leadership by allowing the leader to deliver a motivational...

Persistent link: https://www.econbiz.de/10015264283

The superstar quest: Does youth talent predict professional success for female and male tennis players?

Grove, Wayne A.; Jetter, Michael - 2014

We estimate the relationship between international youth and professional tennis rankings. We find no difference between the predictiveness of rankings from age 14 & Under versus age 16 & Under competitions. The most persistent predictor of professional success is beating older top ranked...

Persistent link: https://www.econbiz.de/10015242123

Telecommunications as a Segment of the Information System in the Republic of Croatia Financial and Legal Aspects

Brekalo, Miljenko; Bilandžija, Nikola; Matić, Branko - 2006

The Republic of Croatia belongs to the circle of transitional countries that has undertaken major efforts at the build-out of the information system. The development of telecommunications has been given a great importance because they represent one of the essential basis for the economical...

Persistent link: https://www.econbiz.de/10015252451

Optimal Saving Rules for Loss-Averse Agents under Uncertainty

Siegmann, Arjen H. - 2001

two-period consumption and savings model for a loss-averse agent who measures utilityfrom consumption relative to a … of the return on saving. We find non-linearity in the fractionof wealth saved, where the specific saving pattern depends … on the sign of the real return on savings. The amount of saving is nondecreasing in initial wealth and the riskiness of …

Persistent link: https://www.econbiz.de/10010324880

Exporting under trade policy uncertainty: Theory and evidence

Handley, Kyle - 2011

uncertainty can delay investment and reduce the response to policy change. I provide theoretical and novel quantitative evidence … for these effects by focusing on trade policy, a ubiquitous but often overlooked source of uncertainty, when a firm's cost … market access, little theoretical and empirical work analyzes the value of WTO institutions for reducing uncertainty for …

Persistent link: https://www.econbiz.de/10010326782

An intertemporal model of growing awareness

Vierø, Marie-Louise - 2017

This paper presents an intertemporal model of growing awareness. It provides a framework for analyzing problems with long time horizons in the presence of growing awareness and awareness of unawareness. The framework generalizes both the standard event-tree framework and the framework from Karni...

Persistent link: https://www.econbiz.de/10011939439

Toward a cognitive science of markets: Economic agents as sense-makers

Johnson, Samuel G. B. - 2019

Behavioral economics characterizes decision-makers using psychologically-informed models. Cognitive science produces psychologically-informed models. Why don't these disciplines talk more? Here, the author presents several arguments for why cognitive science should inform behavioral economics -...

Persistent link: https://www.econbiz.de/10011984439

Speculative trade and market newcomers

Klishchuk, Bogdan - 2019

Arguing that in the real world relatively optimistic inexperienced investors are prey for relatively pessimistic veteran traders, we formalize this intuitive conjecture as a proven proposition in a simple model. This agreement to disagree leads to a perpetual bubble, in which more experienced,...

Persistent link: https://www.econbiz.de/10012141881

Toward a cognitive science of markets: Economic agents as sense-makers

Johnson, Samuel G. B. - In: Economics: The Open-Access, Open-Assessment E-Journal 13 (2019) 2019-49, pp. 1-29

, such as decision under Knightian uncertainty, the dynamics of economic (in)stability, and the voters' preferences over …

Persistent link: https://www.econbiz.de/10012143212