The Net Present Value maximizing model has a respectable ancestry and is considered by most scholars a theoretically sound decision model. In real-life applications, decision makers use the NPV rule, but apply a subjectively determined hurdle rate, as opposed to the “correct” opportunity cost of capital. According to a heuristics-and-biases-program approach, this implies that the hurdle-rate ru...

A simple counterexample shows that the widely used WACC approach to value leverage firms developed by Miles and Ezzell can create an arbitrage opportunity. The only consequence to be drawn is that their WACC approach cannot be applied under the circumstances assumed by Miles and Ezzell. We show how the WACC has to be modified in order to obtain proper results. We develop a theory in continuous ...

The classical APT model is of the form j j j j EI I r E r ε β + − = − ) ( ) ( , where ) ( j j r E r − is the earning deviation (called basic variance-profit) of the security I j, is a common factor. This paper considers the impact on the securities return caused by the skewness and kurtosis of the stock returns distributions, and poses a re-modified the arbitrage pricing model as follows j j j ...

Laboratory experiments employing an induced-values methodology report on allocative efficiencies observed. That methodology requires experimenters know subjects’ motivations, impossible in field experiments. Allocative efficiency implies a hypothetical costless aftermarket would be inactive. An allocation mechanism’s outcome is defined to be behaviorally efficient if an appropriate aftermarket ...

Compendious and thorough solutions to the existence of a linear price equilibrium problem, the secondwelfare theorem, and the limit theoremon the core are provided for exchange economieswhose consumption sets are the positive cone of arbitrary ordered Fréchet spaces—dispensing entirely with the assumption that the vector ordering of the commodity space is a lattice. The motivation comes from ec...

Discrete choice theory is very much dominated by the paradigm of the maximization of a random utility, thus implying that the probability of choosing an alternative in a given set is equal to the sum of the probabilities of all the rankings for which this alternative comes first. This property is called stochastic rationality. In turn, the choice probability system is said to be stochastically ...

The weighted value was introduced by Shapley in 1953 as an asymmetric version of his value. Since then several axiomatizations have been proposed including one by Shapley in 1981 specifically addressed to cost allocation, a context in which weights appear naturally. It was at the occasion of a comment in which only the axioms were stated. The present paper offers a proof of Shapley's statement ...

Tva is the cellular receptor for subgroup A avian leukosis and sarcoma virus (ALSV-A). The viral interaction domain of Tva is determined by a 40-residue, cysteine-rich module closely related to the ligand binding domain of the human low-density lipoprotein receptor (LDLR). In this report, we examined the role of the LDLR-like module of Tva in envelope binding and viral infection by mutational a...

A significant number of parameterizations for the polarized parton densities have appeared in the literature. Using the CTEQ evolution package, these distributions have been evolved consistently preparatory to compilation into an integrated package in the spirit of PDFLIB by Plothow-Besch. Here, a comparison of a few of the more recent distributions are made. Table 1: This is a partial listing ...