In this paper we extend the standard LIBOR market model to accommodate the pronounced phenomenon of implied volatility smiles/skews. We adopt a multiplicative stochastic factor to the volatility functions of all relevant forward rates. The stochastic factor follows a square-root diffusion process, and it can be correlated to the forward rates. For any swap rate, we derive an approximate process...

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during recent years, examining the performance of contrarian strategies has been taken into consideration by scholars and stock market's activists, though several evidences are available based on profitability of this type of strategies, much of them have been referred to american and european's stock markets. in current study, the act of these strategies will be examined in tehran&ap...

Experience in one product market can potentially improve firm performance in a related product market in the future. Thus, entry into a market is determined not just by profits in that market but also by its future impact on profitability in other markets. We formulate and estimate a dynamic model of entry decisions of firms in the presence of such spillovers using data on the generic drug indu...

a r t i c l e i n f o The majority of research on order of market entry has focused on market pioneer advantages or the specialized assets that industry incumbents would need to possess. However, relatively little attention has been paid to whether and how certain firm resources or capabilities may provide latecomers with entry-related advantages. This issue is of particular interest when multi...

Conservation tillage (CT) systems have a number of potential benefits including lower crop production costs and the ability to reduce soil erosion that have made them common in several regions of the world. Although CT systems have been researched and successfully implemented on some farms in California's San Joaquin Valley (SJV), overall adoption is low and the reasons for the region's compara...

Between the 1970s and 2009 the Swedish pharmacy market was characterized by a governmental monopoly with Apoteket AB as the only market-actor. By the year 2009, market reforms and re-regulations allowed private companies to enter the pharmacy market. Still, pertaining to existing regulations (e.g the pricing of prescription drugs) the market cannot be described as entirely free. The purpose of ...

We study a major new entry in the French mobile telecommunications market, followed by introduction of fighting brands three incumbents. Using an empirical oligopoly model, we find that incumbents’ brand strategies are difficult to rationalize as unilateral best responses. Instead, their consistent with breakdown tacit semi-collusion: before entry, incumbents could successfully coordinate on re...

Motivated by the German postal market, this paper analyzes the effects of regulatory uncertainty about labor costs for investment into a liberalized market. We distinguish between the external investment margin (market entry) and the internal investment margin (technology) and establish that regulatory uncertainty affects these margins differently, encouraging market entry but discouraging inve...