The present work focuses on the development of a simulation method which provides an engineering tool for managing the risks associated with the development of an oil field. The developed method consists of performing discrete simulation based on data from field operations. The paper reports and discusses the simulation results of a real field development which lead to the following highlights:...

This paper focusses on survey expectations and discusses their uses for testing and modeling of expectations. Alternative models of expectations formation are reviewed and the importance of allowing for heterogeneity of expectations is emphasized. A weak form of the rational expectations hypothesis which focusses on average expectations rather than individual expectations is advanced. Other mod...

We consider an exchange economy in which a seller can trade an endowment of a divisible good whose quality she privately knows. Buyers compete in menus of nonexclusive contracts, so that the seller may choose to trade with several buyers. In this context, we show that an equilibrium always exists and that aggregate equilibrium allocations are generically unique. Although the good offered by the...

We analyze the optimal contract to finance the series of investments of a growing firm. The analysis is based on the need to repeatedly raise funds when informed insiders can expropriate outside investors. The optimal contract can be implemented by a sequence of one-period debt contracts and equity ownership by outsiders. Debt is optimal, as it reduces the expected cost of auditing, while parti...

By allocating different information to team members, secret contracts can provide better incentives to perform with an intuitive organizational design. For instance, they may help to monitor monitors, and attain approximately efficient partnerships by appointing a secret principal. More generally, secret contracts highlight a rich duality between enforceability and identifiability. It naturally...

Ž . In automated negotiation systems for self-interested agents, contracts have traditionally been binding. They do not accommodate future events. Contingency contracts address this, but are often impractical. As an alternative, we propose le eled commitment contracts. The level of commitment is set by breach penalties. To be freed from the contract, an agent simply pays the penalty to the othe...

The sovereign debt crisis challenged investors in European government bonds to deal with volatile interest rate spreads. For managing sovereign risk, “Eurex” introduced futures contracts on Italian government bonds reflecting risks of lower rated countries. We analyze hedging strategies for bond portfolios with futures on German and Italian government bonds before and during the sovereign debt ...

This paper studies a dynamic agency problem which includes limited liability, moral hazard and adverse selection. The paper develops a robust approach to dynamic contracting based on calibrating the payoffs that would have been delivered by simple benchmark contracts that are attractive but infeasible, due to limited liability constraints. The resulting dynamic contracts are detail-free and sat...

E-contracts have been broadly used to improve business-to-business collaboration. Different e-contracting activities have been identified to support e-contract establishment and e-contract fulfillment. In virtual organization domain, there exist different types of virtual organizations. Each of them has different purposes, missions and goals. As an important step in a virtual organization creat...

We study the rare decays of B s → M s ℓ ¯ ℓ (M s = η, η ′ , φ and ℓ = ν, e, µ, τ) in the standard model. With the hadronic form factors evaluated in the light front and constituent quark models, we estimate the decay branching ratios, respectively. We also discuss the longitudinal lepton polarization and forward-backward asymmetries.