The paper studies bilateral contracting with endogenous property rights. Players engage in costly ex post adjustment of ex ante contract. After ex ante agreement on surplus sharing, players invest irreversibly production. Player costs of altering ex ante contract are transaction costs of three kinds: measurement, information and enforcement costs. Each player chooses an action which incurs tran...

The primary objective of this paper is to test informational efficiency of the A random walk test is performed for weak-form efficiency. In addition, day of the week effects are investigated to test semi-strong form efficiency. Empirical results verify that the İSE Composite Index is neither weak-form nor semi-strong form efficient although the nature and degree of inefficiency differ across pe...

This paper propounds a contract-theoretic model where dowry acts as a screening device to differentiate grooms of varying qualities. In 'arranged' marriage settings that are characterized by incomplete information in the sense that the true quality of the groom remains unobservable to the bride, and in the presence of observable traits like education that are easier for the better quality groom...

W study capacity reservation contracts between a high-tech manufacturer (supplier) and her oem customer (buyer). The supplier and the buyer are partners who enter a “design-win” agreement to develop the product, and who share the stochastic demand information. To encourage the supplier for more aggressive capacity expansion, the buyer reserves capacity upfront by paying a deductible fee. As cap...

This study investigated the effectiveness of concentrated observations for ocean state estimation in a region remote from the observation site. I executed a twin observing system simulation experiment (OSSE) for the North Pacific region, using an ocean data synthesis system, to examine how the potential effectiveness is for a well-defined criterion, the representativeness of the subsurface sali...

INTRODUCTION This study was designed to evaluate the psychometric attributes and screening efficiency of a Spanish version of the Children Predictive Scales (DPS) against the Spanish Diagnostic Interview Schedule for Children (DISC-IV). METHOD This pilot cross-sectional study included 61 children aged 9 to 14 years in a mainstream school. The following psychometric attributes were analyzed: a...

A principal-agent (P-A) model is used to analyse the effect of environmental performance indicators (EPI) on environmental risk sharing within the firm. To achieve due diligence, the principal (top management), having to use imperfect performance indicators and fearing penalties for environmental damages, wants to avoid environmental harm and induce the agent (employee manipulating hazardous ma...

Information markets provide a revolutionary mechanism for revealing aggregate knowledge. They continue to gain popularity in academic circles and continue to prove themselves through successful prediction for practical applications. Policy makers have shown to be wary of depending upon their results exclusively for decision-making, but there is evidence that information markets could be used fo...

According to the Porter-Hypothesis (PH) stricter environmental regulations in one country may trigger innovations in that country, which may partially or more than fully offset the compliance costs of domestic firms, thus possibly improving their international competitiveness. This paper investigates whether conditions exist under which this Hypothesis is valid either in its weak form (partiall...

A successful marriage requires for both parties to make investments in their relationship and marital assets. How such assets would be divided if and when the parties divorce is an important factor determining each party’s (exante) investment incentives. Using the “incomplete contracting” approach, we characterize the optimal asset division rule, one that provides the parties with the best inve...