We study competitive equilibria with moral hazard in economies with aggregate risk and where trading occurs with an incomplete set of financial assets. The main conclusion of the paper is that, contrary to the individual risk economies, moral hazard is compatible with trading in competitive...

In this paper, the authors study the possibility of controlling asset price volatility through financial innovation in a three-period finite competitive exchange economy with incomplete financial markets and retrading.

A technology with increasing marginal costs produces indivisible units of service. Each agent wants at most one unit of service. We compare two natural mechanisms where users have free access to the technology. In one mechanism, Average Cost, each user pays the same average cost, in the other,...

This paper considers the impact of privatization on corporate entrepreneurship. The proposed model illustrates how a firm's capacity to implement internal changes is influenced by three factors: credibility of the privatization process, speed of the process, and the new regulatory environment....

This paper is an investigation into whether and under which conditions consistency between brand name and logo may positively influence consumer attitudes toward brands through three studies.

The competitive equilibrium correspondence, which associates equilibrium prices of commodities and assets with allocations of endowments, identifies the preferences and beliefs of individuals under uncertainty; this is the case even if the asset market is incomplete.

Should you set up your own sales force or should you outsouce it? The standard analysis uses a cost basis to answer this question. It assumes that the direct sales force is largely a fixed cost and that the outsourced sales force is largely a cost that varies with sales. It then calculates the...

This paper focuses on the predictability of the duration between intra-day price changes of stocks from the CAC 40, as well as on the predictability of the returns generated by these price changes. It is argued that traders with different time horizons will look at series of price changes...

A previous article investigated the semantic distinction between the analytical and the synthetic, and applied it to microeconomics; in the present one, the fundamental propositions of this field come to terms with the epistemological distinction between the a priori and the a posteriori (or...

Subjective assessment of an activity perception through an ergonomic approach.