In this note we show that the results developed in Singh and Vives (1984) are sensitive to the duopoly assumption (Rand Journal of Economics 15, 546-554). If there are more than two firms, prices may be higher under price competition than under quantity competition. This will be the case if quality differences are large and goods are complements. If goods are substitutes, high-quality firms may...

ELECTIONS AND ASSET PRICING: THE POLITICALLY SENSITIVE EQUITY OF US MILITARY CONTRACTORS by

In contrast with the classical models of frictionless financial markets, market models with proportional transaction costs, even satisfying usual no-arbitrage properties, may admit arbitrage opportunities of the second kind. This means that there are self-financing portfolios with initial endowments laying outside the solvency region but ending inside. Such a phenomenon was discovered by M. Rás...

Focus is here on coalitional games among economic agents plagued by aggregate pollutions of diverse sorts. Defecting players presumably pollute more than others. Then, granted convex preferences and technologies, the core is proven nonempty. In fact, under natural assumptions, a specific, computable core solution comes in terms of shadow prices on the said aggregates. Such prices may, in large ...

For portfolio choice problems with proportional transaction costs, we discuss whether or not there exists a shadow price, i.e., a least favorable frictionless market extension leading to the same optimal strategy and utility. By means of an explicit counter-example, we show that shadow prices may fail to exist even in seemingly perfectly benign situations, i.e., for a log-investor trading in an...

The biggest obstacle to using a permanent magnet synchronous generator (PMSG) for floating offshore wind turbine (FOWT) is the weight. A superconducting (SCSG) can be an alternative this problem. In paper, first, weight and volume of 10 MW class PMSG SCSG large farm (FOWF) were compared. Reflecting this, economic feasibility 200 FOWF based on semi-submersible platform was compared analyzed. lev...

Floating-point arithmetic is considered an esoteric subject by many people. This is rather surprising because floating-point is ubiquitous in computer systems. Almost every language has a floating-point datatype; computers from PCs to supercomputers have floating-point accelerators; most compilers will be called upon to compile floating-point algorithms from time to time; and virtually every op...

In this paper, we establish a model based on real options theory and fractional Brownian motion (FBM) with jumps to price green bonds, thus alleviate the externalities of bonds. We assume that floating value bonds is linked carbon price. The emission trading mechanism government subsidy policy are introduced into model, expression derived from stochastic differential utility framework fast Four...