This paper revisits recent empirical research on buyer credulity in arts auctions and auctions for assets in general. We show that elementary results in auction theory can fully account for some stylized facts on asset returns that have been held to suggest that sellers of assets can exploit...

This paper analyzes the dynamic interplay between individuals beliefs over transmission risks and their decisions on whether to engage in unprotected sexual behavior. The infectious disease is (possibly) asymptomatic, which makes the inference problem non-trivial. In general, the dynamics of...

We analyze the relation between an individual's risk attitude and his willingness to engage in unprotected sexual behavior, when faced with an asymptomatic infectious disease. In such a situation, the individual must not only assess the likely health status of his partner, but must also form...

This work presents an equilibrium model of diversification through merger formation. Due to moral hazard problems, poorly capitalized firms are credit rationed and may seek to alleviate the incentive problem (and thereby raise external funds) by either merging, employing a monitor or a...

This paper proposes an explanation of merger waves based on a dynamic preemption game. A set of acquirers compete over time for scarce targets. At each point in time, an acquirer can either postpone a takeover attempt, or raid immediately. By postponing the takeover attempt, an acquirer may gain...