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I consider two seemingly unrelated puzzles; 1. Why is relative performance evaluation (RPE) used less in CEo compensation than agency theory suggests? 2. Why is sometimes, e.g., for fund managers, a mediocre performance more highly rewarded than excellence? I consider a simple tournament model,...
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constant relative risk of constant risk aversion or constant absolute risk aversion. We also demonstrate that the introduction … of risk sharing markets may invalidate the blackwll result. …
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competitive market maker faces n risk neutral traders with unit demands or suppliers. It is private information whether any given …
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