Prediction markets have demonstrated their value for aggregating collective expertise [Arrow et al. 2008]. Combinatorial prediction markets allow forecasts not only on base events, but also on conditional and/or Boolean combinations of events [Hanson 2007]. We describe a trade-based combinatorial prediction market asset management system, called Dynamic Asset Cluster (DAC), that improves both t...

Rational price bubble arises when the price of an asset exceeds the asset’s fundamental value, that is, the present value of future dividend payments. The important result of Santos and Woodford (1997) says that price bubbles cannot exist in equilibrium in the standard dynamic asset pricing model with rational agents facing borrowing constraints as long as assets are in strictly positive supply...

In 2007 ‘‘the state of asset management in the Netherlands’’ for infrastructures was established by a national study conducted by the Next Generation Infrastructures research programme (NGInfra). This study showed that within the Netherlands different interpretations of asset management exist. The way asset management is implemented in practice differs widely. Differences included tools, proces...

In a standard asset price model with rational expectations and short-term shocks, long-term shocks affect the distribution of agents’ risk-aversions. Price uncertainty and learning about the distribution are simultaneously determined in an equilibrium. For some parameters, there may be multiple equilibria. In one of them demand is low, there is little revelation of information and uncertainty i...

Title of dissertation: ESSAYS ON ASSET PURCHASES AND SALES: THEORY AND EMPIRICAL EVIDENCE Liu Yang, Doctor of Philosophy, 2006 Dissertation directed by: Dr. Vojislav Maksimovic Department of Finance This dissertation consists of a theory essay and an empirical essay that investigate a firm’s decision to buy or sell corporate assets. It seeks to answer the following research questions: (1) why d...

Since the start of the rational-expectations revolution in the mid 1970s, macroeco­ nomic analysis has been dominated by the assumption of the rational representative agent. This assumption has now become the main building block of macroeconomic modeling, so much so that macroeconomic models without a microfoundation based on the rationality assumption are simply no longer taken seriously. The ...

For many kinds of assets, the growth rate of the real asset stock is a nonlinear function of the economic owner’s decision whether to invest or extract the asset. Examples within the economy are primarily biological assets, both privately owned (such as those found in aquaculature and agriculture) and publicly owned or regulated (such as fish stocks, and in some case, timber stocks.) Optimal ex...

Fund administration is a relatively new service that some banks and back office offer Investment Company’s. This service was regarded as “boutique” in some countries as it was not a necessity hence not enforced by law to have independent calculation and verification of a fund price. However, this sector of business was and has been a major factor in the economic boom for many countries worldwid...