The Sharpe ratio is adequate for evaluating investment funds when the returns of those funds are normally distributed and the investor intends to place all his risky assets into just one investment fund. Hedge fund returns differ significantly from a normal distribution. For this reason, other...

It is known that the Cournot model of quantity competition has to be interpreted as the reduced form of a more complex situation, in which firms can commit to capacity levels prior to setting prices. I show that the optimal strategic debt choice of capacity-price competitors depend on the type...

Brander and Lewis argue in a seminal paper (AER, 1986) that a firm's debt-equity ratio should have important strategic effects on product market competition. We test their model in a duopoly experiment under both, Bertrand and Cournot competition. We find that leverage has strategic effects, but...