Typical of the AIDS epidemics is that governments in developing countries under-invest in drugs production because of the possible appearance of a curative vaccine. We design a set of financial tools allowing to hedge against this event and achieving full risk-sharing. We show that the...

Abstract We argue that reluctance to invest in drug treatments to fight the AIDS epidemics in developing countries is largely motivated by severe losses occurring from the future albeit uncertain appearance of a curative vaccine. We design a set of securities generating full insurance coverage...

We consider a regulator providing deposit insurance to a bank with private information about its investment portfolio. As typical in practice, we assume that the regulator does not commit to auditing after any risk report from the bank. We first show that the optimal contract can be implemented...

This paper investigates simultaneous learning about both nature and others' actions in repeated games, and identifies a set of sufficient conditions assuring that equilibrium actions converge to a Nash equilibrium. Players have each an utility function over infinite histories continuous for the...

This paper extends the convergence result on Bayesian learning in Kalai and Lehrer (1993a, 1993b) to a class of games where players have a payoff function continuous for the product topology. Provided that 1) every player maximizes her expected payoff against her own beliefs, 2) every player...

The present paper shows that a su±cient condition for the existence of a stable solution to an autoregressive neural network model is the continuity and boundedness of the activation function of the hidden units in the multi layer perceptron (MLP). In addition, uniqueness of a stable solution...

A natural conjecture is that speculative trade disappears when individual beliefs become correct through learning. Sandroni in [22] gives a counterexample in an economy with sunspots. We generalize Sandroni's result by showing that the conjecture holds for economies with complete markets only....