A good deal of humility: Cochran on observational studies

Big Deal - good deal? Or is there a better deal?

Correct sampling in observational studies.

This article has no abstract.

On humility.

The new professionalism movement in medical education takes seriously the old medical virtues. Perhaps the most difficult virtue to understand and practice is humility, which seems out of place in a medical culture characterized by arrogance, assertiveness, and a sense of entitlement. Countercultural though it is, humility need not suggest weakness or lack of self-confidence. On the contrary, h...

Pricing Counterparty Risk Using Good Deal Bounds∗

We develop a method for pricing counterparty risk by using good deal bounds. The method imposes a new restriction in the arbitrage free model by setting upper bounds on the Sharpe ratios of the assets. The potential prices which are eliminated represent unreasonably good deals. The constraint on the Sharpe ratio translates into a constraint on the stochastic discount factor. Thus, one can obtai...

Good Deal Bounds Induced by Shortfall Risk

We shall provide in this paper good deal pricing bounds for contingent claims induced by the shortfall risk with some loss function. Assumptions we impose on loss functions and contingent claims are very mild. We prove that the upper and lower bounds of good deal pricing bounds are expressed by convex risk measures on Orlicz hearts. In addition, we obtain its representation with the minimal pen...