Conventional hedonic analysis measures willingness to pay for attributes on the basis of marginal fixed costs. We argue that in many cases variable costs are also affected by these attributes and that this should be taken into account. We develop a simple model to show that the marginal...

This research documents an intriguing empirical phenomenon whereby states of relaxation increase the monetary valuation of products. This phenomenon is demonstrated in six experiments involving two different methods of inducing relaxation, a large number of products of different types, and...

The standard hedonic model of durable assets is a special case of a more general model that contains two additive terms: 1) use value of the existing hedonic vector and 2) the value of the option to reconfigure hedonic characteristics. One empirical implication is that the two parts of value are...

Up to the 2007 crisis, research within bottom‐up CDO models mainly concentrated on the dependence between defaults. However, due to the substantial increase in the market price of systemic credit risk protection, more attention has been paid to recovery rate assumptions.In this paper, we focus...

We first show that liquidity, as measured by stock turnover or trading volume, is an economically significant investment style that is distinct from traditional investment styles such as size, value/growth, and momentum. We then introduce and examine the performance of several portfolio...

In this study, we consider positive cooperative TU games with finitely many players. We assume that all agents use the same scale. Furthermore, the worth that a coalition of players can achieve by cooperation is measured as a multiple of a defined standard base. In this multiplicative setting we...

This paper presents a modern response to the problem imposed by Marx in Capital in 1867, “to lay bare the economic law of motion of modern society” and to provide a vision on how, on the basis of this law of motion the transformation of the capitalist mode of production to the socialist mode...

Recent literature indicates that a liquidity investment style – the process of investing in relatively less liquid stocks within the liquid universe of publicly traded stocks – has led to excess returns relative to size and value. While previously documented at the security level, we examine...

This paper analyses one of Turgot's first economic essays, Plan d´un ouvrage sur le commerce, la circulation et l´intérêt de l´argent, la richesse des états (1753-4). Written prior to the appearance of physiocratic influence, it is Turgot's contribution to the movement of writing that...