The growth in end-user computing (EUC) in organizations and its implications for the degree of centralization of the information services function have led to the need for a theory that will assist in the management of this process. This paper employs microeconomics and, in particular, agency theory to describe the development of EUC in organizations. The results suggest that agency theory prov...

We thank staffs of the Board of Governors of the Federal Reserve and of the Federal Reserve Bank of New York, participants at the Federal Reserve System applied microeconomics conference, the Federal Deposit Insurance Corporation Annual Bank Research Conference and seminar participants at Villanova University for valuable comments. The views presented in this paper are solely those of the autho...

Using the industrial economics approach to the microeconomics of banking we analyze a large bank under credit risk. Our aim is to study how a risky loan portfolio affects optimal bank behavior in the loan and deposit markets, when credit derivatives to hedge credit risk are available. We examine hedging without and with basis risk. In the absence of basis risk the usual separation result is con...

Traditionally, the possibility of Giffen behavior has been motivated by an argument similar to Marshall’s. We will argue that the need to maintain subsistence consumption is the critical factor leading to Giffen behavior, drawing connections between Marshall’s verbal argument, two mathematical models of the situation, and the graphical analysis found in microeconomics textbooks. Although much o...

This paper challenges the common assumption that economic agents know their tastes. After reviewing previous research showing that valuation of ordinary products and experiences can be manipulated by non-normative cues, we present three studies showing that in some cases people do not have a pre-existing sense of whether an experience is good or bad—even when they have experienced a sample of i...

Microeconomics offer a far developed theory on the subject of rational choice. This theory is applied to a multi-agent system, which has been modeled in order to establish schedules for operating theatres in general hospitals. A concept based on conjoint analysis is introduced in order to measure preferences of involved individuals and to establish corresponding individual utility functions. Ag...

In a survey of oligopoly models, techniques of game theory are adapted to find market equilibria and understand deciding forces for firms. We look at situations with increasing complexity, to develop a better understanding of the usefulness of the game theory in market analysis. Initially, we explore the basics of game theory. Then, following an introduction of basic microeconomics, we explore ...