This research note provides clear, unambiguous rationalization for the normative that applications of utility functions to modeling of expectations are non-robust, are, in relation to best practice, out of whack. With this inference in tow, all formal theoretical studies that apply utility...

Suppose an economy is characterized by triad of information asymmetries, efficient aggregation of information, and populations of fully rational agents. This economy is postulated to be an ideal economy for domicile of stock markets. This study shows that in absence of metrics for assessing each...

This study provides formal theoretical evidence that an agenda for economic development of a `Village' that is built around an aggressive foray into provision of Microfinance is more likely to fail, than to succeed. The Microfinance strategy fails, because any businesses formed by `Villagers'...

This study unambiguously demonstrates that, absent independent establishment of boundary rationality conditions for stock prices, behavioral axioms, such as overconfidence, overreaction, underreaction, and attribution bias cannot be robustly applied to rationalization of market phenomena that...

It is no secret that the rational expectations framework has endured what many consider to be a well deserved bashing. From problems, such as, ad hoc specifications of functional forms for utility functions, to adoption of utility functions as units of modeling, to absence of equilibriums that...

Suppose absence of agency problems in interactions between a representative angel investor who already is invested in a project (a 'pre-existing' angel investor), and a representative `entering' venture capitalist who provides a new infusion of capital into the same project. This study finds...

This study provides formal theoretical evidence that value maximization is a rational behavioral, as opposed to rational expectations valuation rubric. Rational behavioral character of the value maximization rubric is evident in the axiomatic finding that, absent arrival of any unanticipated...

The formal theoretical model in this study enables segmentation of countries with respect to three factors, namely, the extent to which income inequality is adopted as a policy variable; the extent to which there is focus on generation of either of `incremental', or `disruptive' innovations; and...

The formal theoretical model in this study provides general equilibrium evidence that a country's ranking with respect to either of income inequality (αr), or GDP Per Capita (Gr) each are better statistics for a country's `placement' in the cross-section of countries than either of actual...

This paper finds that higher quality entrepreneurs time their entry into the venture capital market to minimize the cost of equity financing, and as part of an IPO market timing strategy. Specifically, higher quality entrepreneurs are more likely to enter the venture capital market when average...