Although stock options are commonly observed in chief executive officer (CEO) com- pensation contracts, there is theoretical controversy about whether stock options are part of the optimal contract. Using a sample of Fortune 500 companies, we solve an agency model calibrated to the...

Two theorems are given; the first extends the Sonnenschein-Mantel-Debreu theorem characterizing aggregate demand functions from the set of n (greater than or equal to) 2 commodities to all 2 (superscipt n) minus (n+1) subsets of two or more commodities. The second theorem concerns spatial voting...

A strategy profile in a repeated game has bounded recall L if play under the profile after two distinct histories that agree in the last L periods is equal. Mailath and Morris (2002, 2006) proved that any strict equilibrium in bounded-recall strategies of a game with full support public...