Recent concern over "high frequency trading" (HFT) has called into question the fairness of the practice. What does it mean for a financial market to be "fair"? We first examine how high frequency trading is actually used. High frequency traders are often implementing traditional beneficial...

Compensation theory implies that managers should not be rewarded or penalized for factors outside their control. However, firms do not adjust the exercise prices of executive stock options to reflect overall stock market movements which are outside the control of the manager. This results in an...

Individuals and businesses make billions of payments every day in various forms. Payers have choices about what forms of payment they will make, and payees also have some flexibility on what they will accept. Different forms of payment involve different costs and benefits for both the payer and...

Compensation theory implies that managers should not be rewarded or penalised for factors outside their control. However, firms do not adjust the exercise prices of executive stock options to reflect overall stock market movements that are outside the control of the manager. This results in an...