Based on an entrepreneurial model having historical roots in Knight (1921), a competitive general equilibrium theory of the firm under uncertainty is constructed. The expected utility maximization criterion is used and justified by assuming that for each firm there is an expected utility...

We compare the efficiency with which management discretion and shareholder choice regulate hostile tender offers. This is the first paper in a long running debate that rigorously compares these legal rules to analyze both the critical informational assumptions and the interplay of those...

Under the assumption of complete markets, a fundamental result of competitive market analysis (whether for speculative or commodity markets) is that prices contain all information necessary for optimal decisionmaking by individual economic units. The role that prices play in disseminating...

In this paper we examine the demand for information and the value of information in an intertemporal continuous time model. The model analyzed is a model with incomplete information where the information technology is controlled by the investor at a cost. The continuous bayesian updating of...