When the trading process is characterized by search frictions, traders may be rationed so markets need not clear. We argue that rationing can be part of general equilibrium, even if it is outside its normal interpretation. We build a general equilibrium model where the uncertainty arising from...

Given a basket option on two or more assets in a one-period static hedging setting, the paper considers the problem of maximizing and minimizing the basket option price subject to the constraints of known option prices on the component stocks and consistency with forward prices and treat it as...

A number of algebraic approaches to dichotomous data have attracted interest in the social sciences. Despite their underlying connections, these different approaches have different assumptions and realms of applicability. In particular, some approaches (which may be termed explanatory) assume a...

This paper characterises some of the main issues confronting water-catchment managing in a climate-changing world and addresses wide-spread concerns about the lack of connectivity between science, policy making and implementation. The paper’s arguments are ‘framed’ within a paradigm of...

Purpose – The paper aims to show that economic theory has become “desocialised” and separated from social theory through the adoption of individualistic methods and neglect of social relations and structures. It also seeks to assess the upshot of these trends, as well as the prospects for...

We consider nonlinear stochastic optimization problems with probabilistic constraints. The concept of a p-efficient point of a probability distribution is used to derive equivalent problem formulations, and necessary and sufficient optimality conditions. We analyze the dual functional and its...