We consider a general economic equilibrium model with divisible commodities and price functions based on the material balance condition. We show that mechanisms for attaining its solution points are closely related to information exchange schemes attributed to the model within its basic...

Information frictions play a key role in an array of economic activities and are frequently incorporated into formal models as search costs. However, little is known about the underlying source of consumer search costs and how heterogeneous they are across consumers and markets. This paper...

This paper provides risk/reward evaluation and legal analysis of foreign investing under Cuban Law No. 118 (2014). Section I addresses dynamic changes in Cuba since 2008. Section II examines reforms of Cuban foreign investment laws. Section III explores investment options such as import/export,...

The Cournot model makes assumptions about the knowledge of the players, which can lead to counterintuitive results when extending the basic model. Closed-loop equilibria and models with consistent conjectural variations are problematic in that they reduce or eliminate economic rents while the...

We model how investors allocate between asset managers, managers choose their portfolios of multiple securities, fees are set, and security prices are determined. The optimal passive portfolio is linked to the “expected market portfolio,” while the optimal active portfolio has elements of...

We study joint marketing arrangements by competing firms who engage in price discrimination between consumers who patronize only one firm (single purchasing) and those who purchase from both competitors (bundle purchasers). Two types of joint marketing are considered. Firms either commit to a...

Anecdotal, empirical, and experimental evidence suggests that offering extrinsic rewards for certain activities can reduce people's willingness to engage in those activities voluntarily. We propose a simple rationale for this 'crowding out' phenomenon, using standard economic arguments. The...

The concepts of comprehensive regulation, financial networks, linkages, contagion risk and complexity have become the everyday reference in discussions about financial regulation. Most of these concepts of complex adaptive systems have been developed and originally deployed in quantitative...

The methods that bankruptcy courts have traditionally used to adjudicate fraudulent transfer claims have at times led to inconsistent, unpredictable, and inadvertently biased outcomes. However, recent legal and financial innovations may aid bankruptcy courts in assessing fraudulent transfer...

By making new product preannouncements (NPP) firms encourage consumers to postpone purchase and wait for the firms' new product that in turn cannibalizes current sales, both own and competitor's. Profitability of NPP depends on which firm's sales are cannibalized and relative margins on current...