Research on idiosyncratic volatility in developing countries, particularly Indonesia, is scant. This study the first to explain concepts through an information environment approach and examination of asymmetry. aims analyze phenomenon risk whether it related price informativeness or error, by considering environment. We identified based liquidity levels stock risk. Our research revealed relatio...

The Sato process model for option prices is expanded to accomodate credit considerations by incorporating a single jump to default occuring at an independent random time with a Weibull distribution. Explicit formulas, in this context, for the bid and ask prices of two price economies that price residual risks to levels of risk acceptability are then derived. Liquidity considerations are thereby...

;. Current thought is that the most appropriate method for determining the value of life or of reduced risk of injury is through estimation of a revealed market value individuals place on risk. That theory assumes that risk is transacted in the market in the form of wage premiums workers receive for engaging in higher risk jobs. Hedonic price estimation techniques have been used to estimate tha...

The price multiplier effect provides precious insight into the behavior of investors during episodes of speculative trading. It tells us that the higher the price of an asset is (within a set of similar assets) the more its price is likely to increase during the upgoing phase of a speculative price peak. In short, instead of being risk averse, as is often assumed, investors rather seem to be “r...

Predatory pricing law attempts to keep prices low by harshly sanctioning prices that are anticompetitively low. The paradox of predatory pricing law is that even an analytically perfect specification of the line between predatory and innocent price cuts would result in deviations from optimal pricing because the very recognition of a predatory pricing offense will induce some firms to forgo inn...